Multifamily Construction Grows in 2H 2025, NAHB Reports

(Photo credit: Mike Sorohan)

Multifamily construction posted gains across all geographic regions in the second half of 2025, the National Association of Home Builders’ Home Building Geography Index found.

“While single-family home building continues to face challenges across most of the nation, multifamily construction strengthened across every region in the fourth quarter following two years of uneven performance,” NAHB Chief Economist Robert Dietz said. “Growth returning to large metro core counties coupled with sustained construction in smaller markets signals a more balanced and geographically diverse multifamily sector heading into 2026 than in years prior.”

The HBGI is a quarterly measurement of building conditions across the country and uses county-level information about single- and multifamily permits to gauge housing construction growth in various urban and rural geographies.

NAHB said the market share of multifamily construction shifted in the fourth quarter. “The new status quo of higher levels of multifamily construction in smaller, less-densely populated areas remains,” the report said. “Compared to the fourth quarter of 2024, the largest increase in market share was in small metro core counties, with a gain of 0.6 percentage points over the year. Large metro outlying counties lost 0.5 percentage points during 2025, registering the largest decline in market share. All other geographies saw little change from last year.”