NAICS 236116 Quarterly Industry Report
New Multifamily Housing Construction (except Operative Builders)
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 236116Sector: Construction (23)Updated: Q1 2026
About This Report
This industry profile for New Multifamily Housing Construction (NAICS 236116) draws on data from the U.S. Census Bureau[6], Bureau of Labor Statistics[10], OSHA[9], and SBA size standards database[8]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, multifamily construction analysts, and real estate development investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the new multifamily housing construction (except operative builders) industry.
Industry Definition & Overview
New Multifamily Housing Construction (NAICS 236116) encompasses general contractor establishments primarily responsible for the construction of new multifamily residential housing units such as high-rise apartments, garden apartments, town house apartments, and condominiums where each unit is not separated from its neighbors by a ground-to-roof wall per the U.S. Census Bureau[5]. This classification includes multifamily design-build firms and multifamily housing construction management firms acting as general contractors, but excludes for-sale builders who construct and sell completed multifamily projects.
Roughly 3,481 firms operate 3,662 establishments employing 47,582 workers with $4.6 billion in annual payroll per Census Bureau[6] economic survey data. Average firm size of 13.7 employees reflects the larger project scale compared to single-family construction. Multifamily housing starts fluctuate with rental market conditions, interest rates, and urban development trends. D.R. Horton, Lennar, and regional multifamily specialists represent major builders, with the top 25 apartment developers starting over 100,000 units annually per NAHB[7] industry data.
Per the SBA Table of Size Standards[8], the size standard is $45 million in average annual receipts. International Building Code (IBC) rather than the International Residential Code governs multifamily structures of three or more units in most jurisdictions, with more stringent fire separation, egress, and structural requirements than single-family construction. ADA accessibility requirements apply to common areas and a percentage of dwelling units in new multifamily construction. OSHA[9] construction standards under 29 CFR 1926 govern job site safety, with steel erection, crane operations, and fall protection from multi-story structures presenting elevated risk profiles compared to single-family building. Prevailing wage requirements under Davis-Bacon Act apply to federally funded multifamily projects including those financed through Low-Income Housing Tax Credits with federal subsidies.
What's Included in This Industry
- Apartment building new construction general contracting
- Condominium and cooperative housing construction
- Mixed-use residential building construction
- Student housing and dormitory construction
- Senior housing and age-restricted community construction
- Affordable housing and LIHTC project construction
- Multifamily design-build services
- Construction management for multifamily developers
- Podium and wrap-style residential building construction
- High-rise residential tower construction
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Construction | 23 |
| Subsector | Construction of Buildings | 236 |
| Industry Group | Residential Building Construction | 2361 |
| NAICS Industry | Residential Building Construction | 23611 |
| National Industry | New Multifamily Housing Construction (except For-Sale Builders) | 236116 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 236115 | New Single-Family Housing Construction (except For-Sale Builders) | New Single-Family Housing Construction uses many of the same general contracting methods at smaller scale, with single-family builders and multifamily contractors sharing subcontractor labor pools in markets where residential construction demand spans both product types |
| 236117 | New Housing For-Sale Builders | New Housing For-Sale Builders construct multifamily condominiums and townhomes for speculative sale, overlapping with multifamily general contractors who build under contract for developer clients rather than selling completed units directly to buyers |
| 236220 | Commercial and Institutional Building Construction | Commercial and Institutional Building Construction shares similar structural systems, project management approaches, and subcontractor requirements with large multifamily projects, with mid-rise and high-rise apartment construction resembling commercial building methods more than traditional residential techniques |
| 531110 | Lessors of Residential Buildings and Dwellings | Lessors of Residential Buildings operate completed apartment properties that multifamily construction firms build, with developer clients financing new construction based on projected rental income and property management returns that lessors will generate from the finished buildings |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 11.1% | 438 |
| 2 | Florida | 10.4% | 410 |
| 3 | New York | 8.8% | 344 |
| 4 | Texas | 7.3% | 288 |
| 5 | New Jersey | 4.5% | 179 |
| 6 | Illinois | 4.4% | 173 |
| 7 | Washington | 3.5% | 136 |
| 8 | Georgia | 3.0% | 120 |
| 9 | North Carolina | 3.0% | 116 |
| 10 | Massachusetts | 2.8% | 109 |
% Of Establishments
0%
11%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
392
Total SBA Loans
$82.5M
Total Loan Volume
$210K
Average Loan Size
10 yrs
Average Loan Term
11.16%
Average Interest Rate
2,352
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[8], New Multifamily Housing Construction (NAICS 236116) has a size standard of $45 million in average annual receipts for federal contracting purposes. SBA lending programs[11] support equipment acquisition, working capital, and business expansion for qualifying multifamily construction firms. Eligible businesses can access SBA 7(a) loans[12] for working capital, equipment, and acquisition financing, while 504 loans[13] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Northeast Bank | 128 | $22.2M | $173K |
| 2 | Community National Bank | 16 | $12.0M | $750K |
| 3 | Readycap Lending, LLC | 32 | $10.0M | $313K |
| 4 | JPMorgan Chase Bank, National Association | 16 | $6.0M | $373K |
| 5 | Webster Bank National Association | 8 | $4.0M | $500K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for apartment building construction?
NAICS 236116 covers new multifamily housing construction including apartments, condominiums, and town house buildings by general contractors per the U.S. Census Bureau[5].
What is the SBA size standard for multifamily construction?
The SBA size standard[8] is $45 million in average annual receipts, determining eligibility for federal small business contracting programs and SBA lending products.
How large is the multifamily construction industry?
Roughly 3,481 firms operate 3,662 establishments employing 47,582 workers per Census Bureau[6] economic survey data, with average firm size of 13.7 employees reflecting the larger project scale compared to single-family home construction.
What building code applies to multifamily construction?
International Building Code governs multifamily structures of three or more units in most jurisdictions per International Code Council standards, with more stringent fire separation, egress, and structural requirements than the International Residential Code used for single-family and two-family dwellings.
What ADA requirements apply to new apartments?
ADA accessibility requirements apply to common areas and a percentage of dwelling units in new multifamily construction per federal accessibility standards, with Fair Housing Act design requirements additionally mandating accessible features in ground-floor units of buildings with four or more units.
When does Davis-Bacon prevailing wage apply?
Davis-Bacon Act prevailing wage requirements apply to federally funded multifamily projects per Department of Labor[14] regulations, including those financed through Low-Income Housing Tax Credits with federal subsidies and HUD-insured construction loans.
What types of multifamily buildings are constructed?
Construction types include garden-style apartments, podium and wrap buildings, mid-rise wood-frame over concrete, steel-frame high-rise towers, and mixed-use residential-over-retail per industry building classification standards, with structural system selection driven by height, density, and local code requirements.
How does multifamily differ from single-family construction?
Multifamily projects involve larger scale, International Building Code compliance, ADA requirements, more complex structural systems, and longer construction timelines per Census Bureau[5] classification distinctions, with average firm size of 13.7 employees versus 3.8 for single-family builders.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Census Bureau data.census.gov
- [7]NAHB nahb.org
- [8]SBA Table of Size Standards sba.gov
- [9]OSHA osha.gov
- [10]Bureau of Labor Statistics bls.gov
- [11]SBA lending programs sba.gov
- [12]SBA 7(a) loans sba.gov
- [13]504 loans sba.gov
- [14]Department of Labor dol.gov
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