Multifamily Housing Ramps Up

As noted by The Kobeissi Letter this week:

US multifamily housing unit completions hit 647,000 at an annual rate in Q3 2024, the fastest pace in 3 decades. Since 2022, additions of housing units in buildings with 5+ units have more than DOUBLED.

Clearly, builders have turned decisively toward multifamily projects. It’s easier to create more units quickly that way, and land isn’t as much of an issue. Thanks to this multifamily housing bonanza, we can expect US residential rental rates to continue coming down—and for lots of Americans to look more favorably on renting than home ownership.

What does this mean for the US workforce? One clear effect: With less pressure on their paycheck from rent, employees may be able to better cope with inflation in other areas. Though wage growth has kept pace with inflation this year, working Americans could feel less of a crunch.

The other thing CEOs should consider is the mobility of the workforce. A supremely talented employee who rents might be far mor…