According to the latest findings from the National Association of Home Builders (NAHB) Home Building Geography Index (HBGI) for the third quarter of 2023, single-family growth rates were negative for all geographic sectors of the nation for three consecutive quarters. Exurban areas poster the largest increase in market share for both single-family and multifamily construction.
According to NAHB, “Rising mortgage rates, elevated construction costs and chronic construction labor shortages have led to negative quarterly growth rates in single-family home building for all geographic markets since the beginning of 2023,” said NAHB Chairman Alicia Huey, a custom home builder and developer from Birmingham, Alabama. “Meanwhile, the HBGI report shows the multifamily sector continued to post strength in two geographic areas: large metro outlying counties posted a ninth consecutive quarter of positive growth while non-metro/micro counties registered positive growth for the 11th straight quarter.”
“The HBGI data continues to show that home building has slowed, but there are signs that it is beginning to turn a corner heading into the end of the year as the Federal Reserve has paused rate hikes as inflation continues to slow,” said NAHB Chief Economist Robert Dietz.