Single-family home building shifts – Floor Covering News

build a houseWashington DC – New findings from the National Association of Home Builders (NAHB) Home Building Geography Index (HBGI) show a shift in housing activity over the past 30 months, with a notable slowdown in major metropolitan areas due to the initial COVID -19 -19 migration effects followed by a decline in housing affordability in expensive and highly regulated markets as interest rates rose.

“The geography of housing has shifted in the past two and a half years, with more single-family and multi-family construction in lower-density markets,” said Robert Dietz, chief economist at NAHB. “This shift was first triggered by the initial impact of COVID-19 on housing demand, which favored lower-density neighborhoods. The shift has continued in recent months due to housing affordability that is driving potential tenants and buyers alike to expand their geographic search for housing, aided by hybrid work patterns that allow for a combination of remote work and the office.

According to NAHB Chairman Jerry Konter, a homebuilder and developer based in Savannah, Georgia, single-family home production has slowed in all regional submarkets due to ongoing bottlenecks in building materials production, construction worker shortages and the Federal Reserve’s tightening monetary policy in recent years. In recent years. 12 months.

The HBGI is a quarterly measure of building conditions across the country and uses county-level information on single- and multi-family permits to gauge housing growth in various urban and rural regions.

The index shows that from the fourth quarter of 2019 (pre-COVID-19) to the second quarter of 2022, the market share for single-family housing in major metropolitan and suburban areas fell from 44.5% to 41.6%. , construction of suburban single-family homes in large and medium-sized metros increased from 17.4% to 19% over the same period.

According to the NAHB, this decentralized trend is true in the most sparsely populated regional markets. From the fourth quarter of 2019 to the second quarter of 2022, the market share of single-family homes in small metropolitan regions increased from 28.8% to 29%. In rural areas, which represent non-metro/microcountries, the share of housing construction increased from 9.4% from 9.4% to 10.4%.

Meanwhile, the multifamily market showed a similar pattern over the same time frame, according to the NAHB. The market share of multi-family construction in major urban core areas decreased from 41.7% in the fourth quarter of 2019 to 39.3% in the second quarter of 2022.

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