Currently Reading

Multifamily Construction Posts Strong Suburban Growth

Advertisement
Multifamily

Multifamily Construction Posts Strong Suburban Growth


June 10, 2021
Apartment construction
Photo: Jonathan Stutz | stock.adobe.com

Single-family construction continues to ramp up in low-density, more affordable markets to meet demand, but the National Association of Home Builders says this trend is even stronger with multifamily construction. After a decline in construction during 2020, multifamily construction has bounced back during the first quarter of 2021. Multifamily construction declined 67% but that share increased to 63.4% from the last quarter of 2020 to the first quarter of 2021. The increase in apartment construction in small metro areas came at the expense of large metro core and suburban counties, says NAHB.

For single-family home building, the suburban shift was less amplified but evident nonetheless: the market share for large metro core counties declined from 18 percent in the first quarter of 2020 to 16.9 percent in the first quarter of 2021. Outlying counties (outer suburbs) of large and small metros expanded from 17.2 percent to 17.9 percent. The strongest quarterly gains were experienced in outlying counties of large and small metro areas, by 20.3 percent and 21.7 percent, respectively, and in rural counties by 20.3 percent. These three regional classes constitute 22 percent of single-family residential construction’s market share. Large metro core areas showed the slowest growth rate at 9.7 percent, a positive rate but a relative laggard.

The NAHB forecast assumes some rollback of housing demand to medium density markets, particularly during the second half of 2021. This rollback can be seen in recent strength for townhouse construction.

Read More
 

Related Stories

Housing Markets

It's Now Cheaper to Rent Than Buy in Every State

To rent or to buy? That’s the question many prospective buyers and renters face, and the answer usually comes down to finances. The answer today…

Multifamily

Kid-Friendly Amenities in Luxury Residences Win Over Parents

Luxury residential properties across the country are catering to parents who took on more childcare during the pandemic while juggling remote work…

Multifamily

More Than 14% of Renters Are at Risk of Eviction

When the national eviction moratorium ends at the end of the month, more than 10 million Americans are at risk of eviction. That equates to about…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.