Roughly 11,000 multifamily, for-sale housing units were started in the first quarter of 2022, the most since Q3 2008, Eye on Housing reports. As renters seek out larger, more affordable housing post-pandemic, spacious condos are in high demand. The average square footage of multifamily construction starts rose to 1,072 in the first quarter of 2022, and new units are expected to hit the market at a much faster pace and with much larger floor plans.
At 11,000 units started, this was the best quarter for condo construction since the third quarter of 2008.
As a result, the market share of rental units of multifamily construction starts decreased to 91% during the first quarter after standing near 95% in recent quarters. In contrast, the historical low share of 47% was set during the third quarter of 2005, during the condo building boom. An average share of 80% was registered during the 1980-2002 period.
Our forecast is for size to stabilize as multifamily building moves further out from urban cores as renters seek larger, more affordable housing due to the virus crisis. Gains for condo construction could also lift multifamily unit size.