Home Building Geography Index (HBGI)
The Home Building Geography Index (HBGI) is a quarterly measure of building conditions nationwide, utilizing county-level data on single-family and multifamily permits to assess housing construction growth in different submarkets. The first quarter 2024 HBGI emphasizes the population density-based categorization of home building, which has been a core aspect of the index.
According to the NAHB,
Key Findings for Q1 2024:
- The year-over-year growth rates for all single-family markets increased to positive territory for the first time since 2021. This positive news was fueled by the limited amount of existing inventory and pent-up demand for single-family construction.
- In the multifamily sector, growth rates moved negative for all markets for the first time in the HBGI’s history. With over 900,000 apartments currently under construction (the most since 1973) and tighter financial conditions, multifamily construction is slowing from the last year’s highs.
- Labor shortages, supply shortages and higher mortgage rates continue to be issues for both the single-family and multifamily markets.
