Trends in Single-Family and Multifamily Starts

Despite these ups and downs, a long-term trend is present in the ratio of single-family to multifamily starts.
Courtesy of NAHB

Growth in multifamily construction is leading the recent increase in housing starts. Consider the long-run relationship between single-family and multifamily housing starts.

Over the last 40 years, a discernible trend has emerged with respect to the ratio of single-family to multifamily housing starts. Overall, both types of starts have been subject to considerable variation due to business cycle events and/or housing policy changes.

An aging population is one factor that will yield a higher homeownership rate over the long-term and because single-family housing units are the preferred structures of homeowners.

– Courtesy of NAHB