American multifamily homes - statistics & facts

Multifamily homes cover a broad range of housing types, including apartment buildings, condominiums, duplexes, and lofts, to name just a few. For many Americans who live in urban environments, or who cannot or prefer not to live in a single-family home, multifamily homes are a flexible and often more affordable alternative. In recent years, the multifamily market has expanded exponentially and in 2020, the value of multifamily lending reached close to 360 billion U.S. dollars. With a transaction value of close to 140 billion U.S. dollars in 2020, the multifamily real estate market accounted for almost half of the total commercial property market.

Development of multifamily homes

In the United States, commercial development of multifamily homes is rated well in terms of future prospects and returns; worse than industrial property and single family homes but better than hotels and offices. Additionally, in many major American cities, multifamily residential buildings cost less per square foot to construct than single-family homes. The value of multifamily buildings in the United States had plummeted as a result of the 2008 global financial crisis but has since bounced back. In 2020, the value of U.S. multifamily buildings exceeded 86 billion U.S. dollars but is expected to fall to nearly 70 billion U.S. dollars by 2024. The New York-Northern New Jersey-Long Island metropolitan area accumulated construction starts for multifamily and commercial properties totaling 11.5 billion U.S. dollars in the first half of 2020, more than any other major U.S. metropolitan area.

Investment in multifamily homes

When it comes to investing in a multifamily property in the United States in 2022, some of the markets with the best buying prospects are Inland Empire, Raleigh/Durham, and Salt Lake City according to industry experts. In addition, over 30 percent of experts surveyed suggested holding onto multifamily properties in Kanasas City, Cincinnati, and Sacramento rather than buying or selling them. Delaware, Idaho, and Montana were the states with the highest change in monthly apartment rents in 2021. Since the coronavirus (COVID-19) outbreak, the multifamily vacancy rates have increased slightly, from 7.2 percent in the second quarter of 2020, to 8.5 percent in the fourth quarter of 2020.

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