Despite previous forecasts, new multifamily development exceeded expectations in 2023. In part, the performance of this sector was due to a stronger-than-expected first half of 2023. In addition, data now suggests affordable and single-family housing are now significant aspects in the multifamily new-development mix, according to a recent report from Yardi Matrix.

While 2023 full year data is still incomplete, 506,742 multifamily units reportedly started construction during the year. This number would put the year in third, falling only behind 2022 and 2021 in starts for multifamily units.

The inclusion of affordable housing and single-family rentals as multifamily product types has had a consequential impact on the market. To highlight this impact, in 2013, single-family rentals constituted less than 1% of all new multifamily construction. In 2023, their share had increased to 5.8%. For full year 2022, 32,599 single-family rental units started construction, a 1,246% increase over 2013 levels. This sector of the market is on target for 2023 numbers to surpass 2022.