U.S. single-family home construction expanded throughout all four quarters of 2024, supported by a shortage of existing homes for sale, according to the National Association of Home Builders' Home Building Geography Index (HBGI). Despite rising construction costs, limited buildable lots, and a shortage of skilled labor, permit data confirmed an increase in new single-family housing projects, as the National Association of Home Builders (NAHB) reported.
图像: NAHB
Among all regions tracked by the HBGI, small metro core counties recorded the strongest growth in the fourth quarter, rising 10% year-over-year on a four-quarter moving average basis. Non metro/micro counties experienced the slowest expansion, increasing by nearly 5% over the same period. Small metro core counties also accounted for the largest share of single-family construction, representing 29% of total new projects, while non metro/micro counties had the smallest market share at 4%.
Multifamily construction, however, struggled in major metropolitan areas. Large metro core counties posted a 14% decline in the Q4, continuing a negative trend. Despite this, lower-density regions showed some improvement. Small metro outlying county areas led multifamily growth with a 9% increase, marking their second consecutive quarter of expansion. These areas make up 5% of the multifamily construction market.
