15 Cities With the Biggest Increase in Multi-Family Home Construction

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Editor's Note: This story originally appeared on Construction Coverage.

The state of the U.S. housing market has been one of the defining economic stories of the past two years. Since the beginning of the COVID-19 pandemic, housing has become more expensive for both homebuyers and renters.

The median home sales price in the U.S. has increased by more than one-third since the beginning of the pandemic, rocketing past $400,000 in 2021. The rental market was relatively calm early in the pandemic, but renters now are paying more than 25% more on average than they were at this time last year.

Federal mortgage backer Freddie Mac estimates that the U.S. has a 3.8 million unit shortage of housing. But the pandemic has only exacerbated the issue of supply. Housing inventory fell to record lows in 2020. Ongoing supply chain challenges and labor shortages have made it difficult for builders to add new stock: building permits and housing starts have recovered strongly since early in the pandemic, but completions have failed to keep up.

However, as the U.S. emerges from the pandemic, one promising sign for housing supply is an uptick in planned multi-family home construction. Multi-family housing increases the density and availability of housing units in urban and suburban locations, and it is more efficient and cost-effective to develop than single-family stock. And with more people now returning to their offices — along with restaurants, bars, venues, and other amenities — denser housing closer to work and social attractions is regaining its appeal.

For several years prior to the pandemic, the total number of multi-family units authorized held steady, while multi-family units as a share of total units authorized experienced a slow decline. Both of these figures increased in 2019 but fell off again with the onset of the pandemic in 2020. In 2021, however, the total number of multi-family units authorized jumped from 491,700 to 621,700.

Here are the U.S. cities with the biggest increase in multi-family home construction in 2021.

15. Oakland, CA

Oakland California neigborhood
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  • Percentage change in multi-family units authorized (2020-2021): +69.0%
  • Total change in multi-family units authorized (2020-2021): +505
  • Multi-family units as a share of total units authorized (2021): 91.6%
  • Multi-family value as a share of total value authorized (2021): 88.5%

14. Arlington, TX

Arlington, Texas
CK Foto / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +73.1%
  • Total change in multi-family units authorized (2020-2021): +528
  • Multi-family units as a share of total units authorized (2021): 56.2%
  • Multi-family value as a share of total value authorized (2021): 44.7%

13. Miami, FL

Brightly colored Miami home.
SergeevDen / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +75.7%
  • Total change in multi-family units authorized (2020-2021): +2,651
  • Multi-family units as a share of total units authorized (2021): 98.4%
  • Multi-family value as a share of total value authorized (2021): 95.8%

12. Fort Worth, TX

Fort Worth Texas
Barbara Smyers / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +90.1%
  • Total change in multi-family units authorized (2020-2021): +2,056
  • Multi-family units as a share of total units authorized (2021): 37.5%
  • Multi-family value as a share of total value authorized (2021): 26.9%

11. Wichita, KS

Wichita, Kansas
KSwinicki / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +111.5%
  • Total change in multi-family units authorized (2020-2021): +194
  • Multi-family units as a share of total units authorized (2021): 32.6%
  • Multi-family value as a share of total value authorized (2021): 11.9%

10. Portland, OR

Homes in Portland, Oregon
Rigucci / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +113.7%
  • Total change in multi-family units authorized (2020-2021): +1,359
  • Multi-family units as a share of total units authorized (2021): 84.3%
  • Multi-family value as a share of total value authorized (2021): 79.0%

9. Seattle, WA

Seattle house neighborhood
Frank Fell Media / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +113.8%
  • Total change in multi-family units authorized (2020-2021): +6,237
  • Multi-family units as a share of total units authorized (2021): 97.8%
  • Multi-family value as a share of total value authorized (2021): 95.9%

8. Denver, CO

Houses in Denver, Colorado
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  • Percentage change in multi-family units authorized (2020-2021): +117.1%
  • Total change in multi-family units authorized (2020-2021): +4,558
  • Multi-family units as a share of total units authorized (2021): 84.5%
  • Multi-family value as a share of total value authorized (2021): 71.9%

7. Raleigh, NC

Raleigh North Carolina home
KAD Photo / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +121.5%
  • Total change in multi-family units authorized (2020-2021): +2,816
  • Multi-family units as a share of total units authorized (2021): 79.1%
  • Multi-family value as a share of total value authorized (2021): 65.2%

6. Milwaukee, WI

Milwaukee homes
Henryk Sadura / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +125.6%
  • Total change in multi-family units authorized (2020-2021): +98
  • Multi-family units as a share of total units authorized (2021): 86.3%
  • Multi-family value as a share of total value authorized (2021): 71.7%

5. Anaheim, CA

Anaheim California neighborhood
NAPA / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +129.8%
  • Total change in multi-family units authorized (2020-2021): +471
  • Multi-family units as a share of total units authorized (2021): 90.8%
  • Multi-family value as a share of total value authorized (2021): 95.0%

4. Aurora, CO

Aurora Colorado
Arina P Habich / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +214.2%
  • Total change in multi-family units authorized (2020-2021): +1,418
  • Multi-family units as a share of total units authorized (2021): 49.8%
  • Multi-family value as a share of total value authorized (2021): 35.9%

3. Dallas, TX

Dallas, Texas
Joseph Sohm / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +250.6%
  • Total change in multi-family units authorized (2020-2021): +5,553
  • Multi-family units as a share of total units authorized (2021): 77.6%
  • Multi-family value as a share of total value authorized (2021): 62.6%

2. Philadelphia, PA

Philadelphia neighborhood homes
AnjelikaGr / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +406.3%
  • Total change in multi-family units authorized (2020-2021): +19,022
  • Multi-family units as a share of total units authorized (2021): 93.9%
  • Multi-family value as a share of total value authorized (2021): 90.1%

1. Louisville, KY

Louisville Kentucky
Sean Pavone / Shutterstock.com
  • Percentage change in multi-family units authorized (2020-2021): +1,506.9%
  • Total change in multi-family units authorized (2020-2021): +437
  • Multi-family units as a share of total units authorized (2021): 25.2%
  • Multi-family value as a share of total value authorized (2021): 11.1%

Methodology

Man analyzing data on a laptop
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The data used in this analysis is from the U.S. Census Bureau’s Building Permit Survey. To determine the cities with the biggest increase in multi-family home construction, researchers at Construction Coverage calculated the percentage change in multi-family units authorized between 2020 and 2021. Researchers also calculated the total change in multi-family units authorized between 2020 and 2021, multi-family units as a share of total units authorized in 2021, and multi-family value as a share of total value authorized in 2021. To improve relevance, only cities with at least 100,000 residents were included. Additionally, cities were grouped into cohorts by population: small (100,000–149,999), midsize (150,000–349,999), and large (350,000+).

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