According to the latest Home Building Geography Index (HBGI), small metro suburbs accounted for the fastest growing geographical areas for single-family construction during Q2 (up 10.6% on a four-quarter moving average basis). In addition, the Index says the Coronovirus is helping to drive demand for construction in more suburban neighborhoods. The Home Building Geography Index (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 submarkets.
Key Findings:
- The increasing demand for construction in more suburban neighborhoods is being driven in large part by the coronavirus outbreak.
- Small metro suburbs accounted for the fastest growing geographical areas for single-family construction during the second quarter, up 10.6% on a four-quarter moving average basis.
- In the second quarter, single-family housing starts fell by 24% on a quarterly basis. Of the seven regional geographies, only small metro area suburbs posted a year-over-year gain in this quarter, while the others registered declines — the biggest of which occurred in large metro core areas.
- The market share for single-family construction in low-density areas (small metro core and suburbs, small towns and rural markets) increased from 47.5% a year ago to 48.4%.
- The fastest growing geographies for apartment construction in the second quarter were found in the exurbs, small metro suburbs and rural areas.
- The market share for multifamily construction in low density areas (exurban areas of large metro markets, small metro core and suburbs, small towns and rural markets) increased from 32.9% a year ago to 34%.
Click here to read the full report at the NAHB.
