Multifamily Construction Surges as Single-Family Homes Trail
High mortgage rates caused builders to continue pulling back in June on new single-family homes, but but the multifamily sector surges, the U.S. Census Bureau reported.
Single-family housing starts in June were at a seasonally adjusted annual rate of 895,000, down 0.2% from May and 3.2% less than a year ago, Realtor.com reported. The pullback was attributed to elevated construction financing costs and weakening buyer demand.
However, Realtor.com noted that total private-owned housing starts surged 19% month over month and 3.5% year over year to 1,427,000. That figure was driven up by a staggering jump in multifamily construction.
May Had Lowest Level in More Than a Year
According to the Census Bureau, the monthly rate for units in buildings with five units or more was 513,000, up 76% from May’s 295,000 pace, which was the lowest level in over a year.
Meanwhile, the bureau reported that 1,367,000 residential building permits were issued nationwide in June, down 3% from May and 2.3% below the June 2025 pace.
Single-family permits fell 2.4% month over month, with 871,000 authorizations granted.
Rents Decresed
In June, the median monthly rent requested across the 50 largest metro areas decreased to $1,692, representing a decline of 1.5%, or $25, compared to the previous year. This reduction signifies the 35th consecutive month of year-over-year decreases, as a prolonged boom in multifamily construction continues to exceed national demand, as reported in the Realtor.com June 2026 Rent Report.
The metro areas that experience the most relief in the future may depend on the current trends in permitting and construction, which are showing significant variations across different markets.
The median asking monthly rent has now reached $72, representing a 4.1% drop from its 2022 high. Despite this, it is still $238, or 16.4%, above the levels seen before the pandemic. A typical seasonal rise is expected this summer, but due to the continued influx of new construction in many areas, Realtor.com® foresees that year-over-year decreases and rent relief will carry on through 2026.
