Why Is Apartment Construction Rising in Smaller Cities – And What Should Builders Know?

Apartment construction in smaller cities is rising due to remote work enabling professionals to leave high-cost metros, lower land costs, and local incentives like tax breaks and faster permitting. Builders must navigate labor shortages, inconsistent zoning, and complex material logistics. Solutions include prehung doors, prefabricated components, mixed product shipments, and modular or compact unit designs—reducing costs, improving efficiency, and capturing growth opportunities in smaller-city markets.
Apartment

The construction boom is shifting away from major metropolitan areas. Apartment development in smaller cities is becoming a major trend—but it comes with its own set of challenges. As a construction contractor, you need to stay ahead of the curve or risk missing out on valuable growth opportunities.

Apartment construction in smaller cities is on the rise, mainly due to the remote work trend that allows more professionals to leave high-cost metropolitan areas, lower land costs, and local government incentives such as tax breaks and faster permitting. Builders in these markets need to be aware of challenges like labor shortages, inconsistent zoning and permitting processes, and potentially complex material logistics. To address these issues, builders can use prehung doors and prefabricated components, work with suppliers offering mixed product shipments, and adopt modular or compact unit designs—reducing on-site costs, improving construction efficiency, and seizing growth opportunities in smaller-city markets.

Let’s explore what’s driving this trend, what builders should be aware of, and how the right products and sourcing strategy can help you stay competitive.

Apartment Construction

Why is apartment construction moving to smaller cities?

Apartment development is expanding rapidly in secondary and tertiary markets. Here’s why:

  • Remote work has enabled professionals to leave expensive cities and move to suburban or small-town environments.
  • Land costs are significantly lower in less populated areas, allowing developers to stretch their budgets and build more units.
  • Local incentives such as tax breaks and faster permit approvals make smaller markets more attractive to investors.

This trend is creating an opening for contractors who understand how to operate efficiently in these emerging regions.

The factory is piled high with wood products and raw materials

What challenges do developers face in smaller cities?

Building in smaller cities isn’t without its obstacles:

  • Labor shortages are common, especially for specialized tasks like installing doors, cabinets, or trims.
  • Zoning and permitting processes can be inconsistent or outdated, causing delays.
  • Material logistics are more complex, as supplies may need to travel longer distances from distribution hubs.

That’s why efficient sourcing, pre-assembled components, and mixed product shipments are key to staying on schedule and within budget.

A cargo hold filled with goods

How are builders adapting to changing apartment trends?

Contractors are responding with smart strategies tailored to these new environments:

  • Smaller floor plans: Micro-apartments and compact layouts are increasingly in demand.
  • Modular and prefab methods: These save time and reduce on-site labor requirements.
  • Smarter procurement: Builders are turning to suppliers that offer bundled solutions—like doors, trims, and cabinets in one shipment.

Our company helps you meet these needs by offering ready-to-install doors and flexible mixed shipments designed for small-scale multifamily construction.

The forklift is loading goods.

What are the benefits of building in secondary markets?

There are several advantages to shifting your focus to smaller cities:

  • Less competition: You’re not fighting for space or projects like in major metros.
  • Faster growth: Many small cities are experiencing population growth and increased demand for rental units.
  • Government support: Local authorities often provide financial and regulatory incentives for new housing developments.

For contractors who can operate efficiently, these markets offer strong potential.

How can contractors reduce costs on small-scale multifamily construction?

Cost control is critical when working on smaller projects with tighter margins. Here’s how to stay lean:

  • Use prehung doors to eliminate costly labor and reduce errors on-site.
  • Combine product shipments—such as ordering doors, trims, and cabinets together—to lower logistics expenses.
  • Work with suppliers that understand the needs of small-scale construction and offer customizable orders.

👉 We specialize in providing high-quality prehung doors and allow mixed product shipments, ensuring maximum flexibility and cost savings for builders working in smaller markets.

prehung doors

Why choose suppliers who support mixed shipments?

Unlike traditional bulk suppliers, we offer a flexible supply chain model:

  • Order exactly what you need, with no excess stock.
  • Bundle multiple products into a single shipment to save on transport and handling.
  • Simplify site logistics and reduce the risk of material delays.

This is particularly important in small cities where warehouse space and labor may be limited. Our tailored solutions help you move faster and build smarter.

A container stacked with cargo

Final Thoughts

Smaller cities are becoming the next frontier for apartment construction. Contractors who adapt quickly, source smartly, and choose flexible product partners will lead the next wave of growth.

If you’re looking for prehung doors and mixed product shipping to reduce cost and simplify logistics, we’re here to support your projects—no matter the size or location.

Jenny Su

"Hi, I’m Jenny from UWG. We specialize in interior doors, mouldings, cabinets, and flooring, offering one-stop sourcing solutions for builders and contractors. I’ll support you from quote to delivery to ensure smooth communication and on-time shipping."

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Hi, I’m Junny from UWG. We specialize in interior doors, mouldings, cabinets, and flooring, offering one-stop sourcing solutions for builders and contractors.

I’ll support you from quote to delivery to ensure smooth communication and on-time shipping.

Share article

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