There are more multi-family residential properties under construction than at any time since 1974.
890,000 properties with 2+ units are currently being built across the United States. This includes both for-sale product, and for-rent product.
Additional supply is clearly beneficial for both buyers and renters and will hopefully relieve some of the housing affordability issues.
So, why are there so many multi-family units under construction? There seem to be three key reasons.
- The rental market is especially under supplied with product and developers see this opportunity.
- With the increase in residential prices, multi-family becomes the only option for many first-time buyers.
- Supply chain constraints are causing extended construction timelines.