Rental construction is jumpstarting new construction

Builders are constructing more buildings with multiple units than single-family homes. Single-family housing starts were up 1.1% to 830,000, but units in buildings with five or more units drastically increased by 24.1% to 608,000, higher than April 2022. This year’s construction season is just getting started. New construction generally starts in the spring months when weather is warmer, and lasts until the late fall or early winter. Starting in February might be possible for some places with shorter winters and earlier spring starts.


Demand for housing still exceeds supply, a reason for optimism about building and selling sooner rather later. Potential home buyers sidelined over the past couple of years have resorted to renting, and choosing renting over owning is a trend that may only increase with time. Other individual investors are buying housing units to rent, a strategy to build long-term wealth. A Pew Research Center study found that more US households are renting than at any point in the last 50 years.

📬 Sign up for the Daily Brief

Our free, fast, and fun briefing on the global economy, delivered every weekday morning.