Explore the Multifamily Industry Trends Shaping 2026 Projects

A Slowdown in New Construction 

The COVID-19 Pandemic created an increased need for multifamily residences, with the peak of new multifamily construction starts in 2022 (1). The multifamily industry has seen a 71% decrease in new starts from Q1 2022 – Q3 2025. Multifamily experts have predicted that construction will continue to slow before stabilizing over the coming years (2). Despite the slowdown in new starts, the long-term outlook for the multifamily industry remains positive. A growing portion of households are choosing to rent rather than buy, as homeownership is roughly 40% more expensive than renting. There are approximately two million anticipated renter households that were added by the end of 2025, almost doubling the long-term average, signaling sustainable demand for rental housing (3).  

While new multifamily construction is leveling, home improvement is on the rise. The market is projected to grow by 3.8% in 2026 (4), meaning there are still plenty of project opportunities within the multifamily industry. As property management teams – and in some cases residents themselves – look to update and enhance existing spaces, offering a wider variety of cost-effective remodeling options, like Formica® Laminate, helps make these improvements both accessible and appealing. 

Increased Focus on Communal Areas and Amenities

While Gen Z makes up only 26% of the total rental market, they account for 44% of new renters in the last year (5). This makes Gen Z not only an important audience to understand, but also to plan business around. One of the key attractions for this generation of renters is amenities. Communal spaces like movie rooms, coworking spaces, and workout studios help complexes differentiate themselves from competition and drive higher prices.  

Surfaces like Formica® Laminate, 180fx® Laminate, and Everform® Solid Surface are great for communal areas in multifamily residences. These materials are durable, easy to install, and offer designs that look upscale without breaking the bank.

Pricing Transparency and Affordability

The ongoing push for pricing transparency continues to climb among multifamily residents. 94% of renters want all fees disclosed4. This includes fees associated with upcoming unit upgrades, enhanced communal areas, and new amenities. When contractors and builders can provide cost-effective solutions up front, it's easier for building managers and management companies to make necessary renovations while communicating price adjustments to residents in advance. 

Formica Group offers a Portfolio of Surfacing Solutions to meet design, budget, and durability requirements. The variety of materials makes it simple to upgrade and expand existing multifamily spaces in a modern, cost-effective way.  

1) CoStar, October 2025. 

2) Multi-Housing News, December 2025. 

3) YardiMatrix, September 2025. 

4) HIRI, November 2025. 

5) Zillow, December 2025.