The latest data from the National Association of Home Builders showed multifamily starts rising 5% from a year earlier.
 
Much of the activity was concentrated in smaller metro areas and lower-density markets. This may indicate a trend toward markets with different supply and development conditions than major urban centers where activity had been strongest in recent quarters.
 
Recently started units have been primarily for the rental market. Rental units totaled roughly 109,000 of the 117,000 multifamily residences that broke ground during the second quarter.  
 
Multifamily unit sizes increased slightly in the quarter. The average unit footprint was 1,053 sf, up from 1,047 sf in the first quarter. The median unit size rose to 1,008 sf from 960 sf.