Single-Family Construction Slows in Post-Covid Hot MarketsBy RISMedia Staff
The big jump in single-family home-building activity that occurred in the aftermath of the COVID-19 pandemic in large metro outlying counties and exurban areas has shown a marked decline over the past 12 months, according to the latest findings from the National Association of Home Builders (NAHB) Home Building Geography Index (HBGI) for Q3 2022.
The HBGI is a quarterly measurement of building conditions across the country and uses county-level information about single- and multifamily permits to gauge housing construction growth in various urban and rural geographies. The index found that large metro outlying counties registered the largest 12-month decline in single-family production, falling from a 31.9% growth rate in Q3 2021 to a -4.4% rate in Q3 2022. Key highlights:
“The single-family construction slowdown is not just limited to regions of the country that experienced the fastest production growth over the past year,” said NAHB Chairman Jerry Konte. “Home building activity has slowed in nearly all regions and large and small metro markets as high mortgage rates, elevated inflation and stubbornly high construction costs act as a drag on consumer demand and housing affordability.” “While the bulk of single-family construction continues to occur in the South and lower density markets where job conditions are more favorable and housing costs are lower, the data clearly show these areas are acting as a leading indicator for the entire housing market,” said NAHB Chief Economist Robert Dietz. “They are registering the largest production declines, even as other regions—including large metro core and suburban counties—are also displaying weakness as the national housing market has fallen into a recession due to rising mortgage rates and a slowing economy.” For more information, visit www.nahb.org. |
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