The completion of 608,000 multifamily units in the U.S. in 2024 marks an almost 40-year high. It also continued an eight-year trend of builders favoring high-density buildings with 50 or more units.
Meanwhile, a new report from the National Association of Home Builders (NAHB) noted that, historically, most units were located in buildings with fewer than 50 units. In 2024, however, just 46% were housed in low-density buildings, and the remaining 330,000 were in high-density structures.
The South was the only region where low-density prevailed, with 147,000 to 145,000 units. The region also led the nation in the number of multifamily units completed, rising from 212,000 in 2023 to 292,000 in 2024 – 48% of the national total. It was followed by the West (163,000, -27%), the Midwest (87,000,- 14%) and the Northeast (68,000,- 11%).
In the Midwest and Northeast, almost double the number of units were housed in high-density compared to low-density buildings. In the West, low and high-density buildings were evenly split.
Built-for-rent accounted for 95% of multifamily units built in 2024 and 55% in buildings with 50 or more units. “This is a seismic shift towards high-density buildings, as this share was only 25% in 2004,” the report noted.
There was a sharp rise in multifamily units built for sale in the year 2024, spiking to 29,000 from 20,000 in 2023. High-density was again dominant in this sector, with 40% of new units housed in buildings with more than 50 units, compared to 28% in 2023.
In both the high- and low-density categories, structures with 10-19 units declined, accounting for just 4% and 13%, respectively, of completed units.
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