Single-family vs multifamily construction in the US statistics & facts

Single-family and multifamily construction compared

New housing in the United States comes in two very different forms. Single-family homes, mostly detached houses built for sale to owner-occupiers, make up about two-thirds of new construction. Multifamily buildings, mostly apartment blocks with five or more units built to rent, make up most of the rest. The two segments respond to different forces: single-family building depends on mortgage rates and buyer demand, while multifamily building depends on rents, investor demand and the cost of construction loans. Our overview of residential construction in the United States covers the market as a whole.

In 2025, builders started 939,700 single-family homes and about 396,600 units in buildings with five or more units, according to the US Census Bureau and HUD. Spending on new single-family construction was 419.6 billion dollars, nearly four times the 114.6 billion dollars spent on new multifamily buildings. Over the past five years, however, the two segments have followed very different cycles, and in 2026 they are moving in opposite directions again.

Spending on single-family and multifamily construction

Spending on both types of housing rose sharply after the pandemic, but the timing differed. New single-family construction spending jumped from 309.4 billion dollars in 2020 to 423.9 billion dollars in 2021 and peaked at 453.2 billion dollars in 2022, according to the Census Bureau. It fell to 400.4 billion dollars in 2023 when mortgage rates rose, recovered to 433.3 billion dollars in 2024 and stood at 419.6 billion dollars in 2025. Spending across all types of building is covered in our US construction industry statistics.

Different cycles: single-family spending peaked in 2022 at 453.2 billion dollars, multifamily a year later in 2023 at 135.8 billion dollars.

Multifamily spending followed with a lag, because apartment buildings take longer to build and money is spent over a longer period. Spending on new multifamily buildings rose from 85.9 billion dollars in 2020 to a peak of 135.8 billion dollars in 2023, then fell to 125.1 billion dollars in 2024 and 114.6 billion dollars in 2025. In August 2026, the latest month available, single-family spending was running at an annual rate of 403.3 billion dollars, 3.5 percent less than a year earlier, while multifamily spending ran at 115.8 billion dollars, almost unchanged.

The multifamily cycle

The share of multifamily units in new construction rises and falls with the apartment cycle. In 2015, buildings with five or more units accounted for 34.7 percent of all housing starts. The share fell below 30 percent in the late 2010s, rose to 34.2 percent in 2022 at the peak of the apartment boom, and then dropped to 24.6 percent in 2024, the lowest in the period, before recovering to 29.3 percent in 2025. Detailed annual figures for both types are in our report on US housing starts and completions.

Apartment share swings: the five-plus share of starts rose to 34.2 percent in 2022 and fell to 24.6 percent in 2024.

The apartment boom of 2021 and 2022 was driven by strong rent growth, rising household formation among young adults and cheap financing. When the Federal Reserve raised interest rates in 2022 and 2023, construction loans became much more expensive, banks tightened lending and a wave of new supply slowed rent growth. Developers responded by cutting new projects sharply: five-plus starts fell 37 percent from 531,000 in 2022 to 336,200 in 2024.

Homes under construction by type

The number of homes under construction shows the two cycles most clearly. In October 2022, about 782,000 single-family homes and 910,000 units in buildings with five or more units were under construction. Single-family construction then fell steadily as builders finished homes faster than they started new ones, to 589,000 in August 2026. Multifamily construction kept rising until July 2023, when a record of about 1,001,000 units were under construction, before falling by a third to 666,000 in August 2026.

Apartments down a third: multifamily units under construction fell from about one million in July 2023 to 666,000 in August 2026.

Single-family and multifamily in 2026

The latest data show the two segments diverging again. In August 2026, compared with a year earlier, single-family permits were up 1.3 percent and single-family starts up 5.2 percent, but single-family completions were down 22.9 percent. In the multifamily segment, permits for buildings with five or more units rose 9.4 percent, while starts fell 15.5 percent and completions 35.7 percent. Rising multifamily permits suggest that developers are preparing new projects, but many are not yet breaking ground.

Multifamily completions plunge: completions of units in buildings with five or more units fell 35.7 percent in a year, while multifamily permits rose 9.4 percent.

For renters, the drop in apartment completions matters. The record wave of new apartments that arrived in 2024 and 2025 pushed the rental vacancy rate up to 7.3 percent in the second quarter of 2026, according to the Census Bureau, and slowed rent increases. As fewer units are completed in 2026 and 2027, that cushion is likely to shrink. The longer-term gap between supply and demand is covered in our report on the US housing shortage.

How big are new homes?

The two types of housing differ greatly in size. According to the Census Bureau Characteristics of New Housing, the median single-family home completed in 2025 had 2,142 square feet of floor area, and the median home sold had 2,194 square feet. The median new multifamily unit built for rent had 1,000 square feet, and the median unit built for sale, such as a condominium, 1,170 square feet. A new single-family home is therefore roughly twice the size of a new apartment.

Twice the space: the median new single-family home completed in 2025 had 2,142 square feet, compared with 1,000 square feet for a new rental apartment.

Single-family homes have been getting slightly smaller as builders try to keep prices affordable. NAHB analysis of Census data shows that the average size of single-family homes started in 2025 was 2,404 square feet, and median lot sizes have levelled off at around 8,500 square feet. Builders cite land and construction costs as the main reason, as covered in our report on the cost to build a house.

Built-for-rent homes and custom homes

The line between single-family and multifamily is blurring. A growing number of single-family homes are now built specifically to be rented rather than sold. According to the Joint Center for Housing Studies (JCHS) at Harvard University, about 106,000 built-for-rent single-family homes were completed in 2025, 11 percent of all single-family completions. These communities of rental houses appeal to families who want space but cannot afford to buy, and to investors looking for steady rental income.

At the other end of the market, 131,000 single-family homes were started in 2025 as custom homes built by contractors on land owned by the future occupant, with a median contract price of 404,000 dollars, according to the Census Bureau. Most single-family homes, however, are built for sale by home building companies, which increasingly dominate the market, as covered in our report on US homebuilders.

Single-family vs multifamily: key differences

Both segments face the same cost pressures, from higher material prices and tariffs to a shortage of skilled labor. For single-family builders, the main challenge is that many buyers are priced out at current mortgage rates. For multifamily developers, it is the cost of financing and uncertainty about future rents. These issues are covered in our report on home builder challenges, and permit trends by state in our report on US building permits.

Single-family and multifamily in numbers

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