Why Now Is the Time to Pivot to Multifamily Construction

  • Posted by Melanie Klag
    Why Now Is the Time to Pivot to Multifamily Construction

    The housing market is changing fast. For contractors, that shift spells opportunity. Rising home prices, urban migration, and demographic changes are fueling unprecedented demand for multifamily housing across the United States.  

    Contractors who act now and secure the right licenses will be positioned to win bigger, more profitable projects in a booming sector. 

    The Market Has Shifted—Fundamentally and Permanently 

    According to the National Multifamily Housing Council, more than 45 million Americans now live in rental housing. Multifamily units are a major driver of this trend, with new developments accounting for a growing share of housing starts over the past decade. 

    Surging Multifamily Starts Outpace Single-Family 

    In July 2025, housing starts climbed an impressive 12.9% year-over-year, fueled by a staggering 27.4% jump in multifamily projects (buildings with five or more units). Single-family starts lagged at just 7.8%. That stark divergence reflects how many homebuyers are choosing to rent amid soaring mortgage rates and prices—and developers are responding aggressively. 

    Half a Million Apartments Underway 

    Across the U.S., the total number of new apartments set to open this year is projected to exceed 500,000 units, with more than 52% concentrated in the Sunbelt—notably Texas and Florida. Austin leads the charge, followed by metros like Charlotte and New York. 

    Historic Housing Shortage & Demand Gap 

    America faces a gap of nearly 4.7 million missing homes, a legacy of restrictive zoning, labor shortages, and lagging construction. Multifamily represents the most effective response. As such, developers are racing to fill this void. 

    Efficiency Upsides: Prefab & Modular Construction 

    Modern building methods like modular and off‑site construction are transforming multifamily development. These approaches can cut project timelines by 20–50%, lower costs by up to 20%, improve safety, and boost quality—and contractors adept in these methods will stand out. 

    Hot Markets, Bigger Opportunities 

    And the trend is not just local or specific to one area. Across the country, multifamily development is surging: 

    • Atlanta, GA: Absorbed a record 25,500 multifamily units in 2024, with permitting activity still on the rise.
    • Phoenix, AZ: Added 15,600 units in 2024 to keep pace with its booming tech sector.
    • Charlotte, NC: Delivered 4,700 units in Q1 2025 alone—three times the historical average.
    • Northeast Markets: NYC and Boston are prioritizing multifamily, with tens of thousands of new units tied to transit and affordability initiatives. 

    Every region has unique drivers—job growth, zoning reforms, housing shortages—but they all point to one thing: contractors who can deliver multifamily projects are in demand. 

    Why Contractors Need to Act Now 

    This wave of multifamily construction isn’t slowing down, and it's not just about volume—it’s more lucrative. Projects are larger scale, often involving significant developer and public-sector budgets. By adding multifamily skills to your portfolio, it cushions you against the volatility of single-family cycles. Multifamily demand stays strong even when other sectors slow—adding stability for your business 

    However, without proper licensing, contractors risk being shut out of a booming sector. 

    Licenses such as the NASCLA Commercial Building License or a Commercial Contractor License are key to entering this market. These credentials don’t just check regulatory boxes—they open doors to: 

    • Larger, more profitable projects
    • Public sector housing initiatives
    • Partnerships with developers tackling urban growth and affordability challenges 

    If you wait, you risk missing your window to establish yourself as a multifamily builder while demand is peaking. 

    Take Advantage of Licensing Prep Resources 

    At Contractor Training Center, we make it simple to pivot into multifamily construction. Our contractor exam prep programs help you: 

    • Master the NASCLA Exam Prep class or state-specific licensing exams
    • Gain confidence through structured study plans, on-demand content, and practice exams
    • Build credibility by adding multifamily experience and licensing credentials to your resume 

    The NASCLA exam itself is manageable—with consistent prep, most first-time takers pass on their first attempt. With demand surging, there’s never been a better time to start. 

    Final Thoughts 

    The multifamily boom represents one of the largest growth opportunities contractors have seen in decades. Rising rents, housing shortages, and demographic shifts guarantee sustained demand for years to come—but only those with the right licenses will be able to capitalize on it. 

    Don’t wait to be left behind. Take the first step toward your multifamily contracting career today with Contractor Training Center’s proven exam prep resources. 

    👉 Get Licensed with Contractor Training Center 

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