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Housing Reports Show Shifts In Opportunity08-04-26 | News
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Housing Reports Show Shifts In Opportunity

Remodeling and Multi-Family On The Rise
by Keziah Olsen Morris, LASN

Though new build costs are increasing as single-family starts and lot size decrease, homeowners are continuing to invest in the properties they already own, providing great opportunity in the remodeling market. Photo Credit: Arcwind on Unsplash

Last month's reporting on the decreasing size of developed residential lots was recently confirmed with data from the Census Bureau's Survey of Construction showing that, although the median lot size of new single-family detached homes increased slightly (less than 1%) in 2025, the average lot remains below historic levels at under 1/5 of an acre. Sixty-four perfect of new single-family detached homes were on lots under 9,000 square feet, compared to just 46% of homes in this category in 1999, almost 30 years ago.

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The survey revealed another trend relating to the number of single-family homes built with one story, showing a slow increase compared to the number of single-family homes built with two or more stories. Each category rose or fell by just over one percent between 2024 and 2025 - a small change nationally, but one that has had large shifts regionally, possibly reflecting increased construction costs.

This sustained trend is accompanied by a marked increase in multifamily starts, which were up 17.2% last month compared to a year prior, according to the National Association of Home Builders (NAHB). Single-family starts, on the other hand, fell 3.2%. As starts increase in some areas, overall permits decreased, with single-family and multi-family permits respectively 0.2% and 5.7% compared to June 2025. Permits were 15.2% higher in the Northeast, with other regions revealing significantly lower numbers by over half.

Even so, remodeling sentiments remain high, according to the quarterly NAHB Remodeling Market Index (RMI) released at the end of June, and have remained stable for over a year, with the greatest positive growth surrounding moderate remodeling projects in the $20,000-$50,000 range.

All this presents new and some shifting opportunities for Landscape Architects. Smaller lot sizes demand greater creativity in landscape and amenity design. A trend towards multi-family complexes or single-story builds for new single-family homes in the name of affordability might indicate contracts with more streamlined landscape designs. As for those homeowners looking to stay for a couple years or decades more than they intended, remodeling the yard provides a great way to freshen up their surroundings without purchasing a new property. Despite some indications towards shrinking opportunities due to the economy, there are plenty of ways to remain competitive.

As seen in LASN magazine, August 2026.

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