Multifamily rental housing starts increase in Q2 2026

The multifamily housing sector is seeing a significant shift toward rental properties. According to NAHB analysis of quarterly Census data, multifamily for-rent housing starts increased year-over-year in the second quarter of 2026, with 109,000 built-for-rent residences starting construction. This represents a 5% increase compared to the second quarter of 2025. Rental units accounted for 93% of all multifamily construction starts during this period.

This expansion is primarily occurring in smaller metropolitan areas and lower-density markets, as urban core areas show ongoing weakness. The average square footage for multifamily construction starts rose slightly to 1,053 square feet, while the median unit size reached 1,008 square feet.

Market drivers include growing demand from Millennials and Generation Z, who prioritize flexibility and affordability, as well as an increase in single-person households. Other contributing factors include urbanization, the integration of smart home technologies, and a rising necessity for sustainable, green building practices to reduce operational costs and attract environmentally conscious tenants.