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About the
real estate market
In 2024, multifamily construction saw a significant decline as starts fell 25% to a rate of 355,000. There were approximately 1 million apartments under construction – the highest rate since 1973 – which put a damper on the apartment market.
NAHB is expecting multifamily starts to fall 11% this year to a rate of 317,000 while increasing 6% in 2026 to 336,000.
Residential Construction Job Growth Plateaus Short of Pre-Recession Levels
Overall construction employment grew by 11,000 jobs in April, with residential construction companies adding 3,400 positions.
There were 3.3 million Americans employed in residential construction in April: 956,000 home builders and 2.4 million residential specialty trade contractors. Over the last 12 months, home builders and remodelers have added just 5,000 net new jobs. Over the last six months, the average monthly change in home building employment is -1,583.
Supply expansion rate
Most of the multifamily supply expected to come online this year will be in fast-growing Sun Belt markets, including Nashville, Austin, and Dallas.
Multifamily investment sales increased by 42% year-over-year in the first quarter of 2025. However, activity is still 12% below the average for the first quarter of 2017-19, according to Newmark. And despite $328 billion in capital invested in closed-end real estate funds, investors are focusing on high-demand markets such as Austin, Dallas, and Charlotte.
