Latest Home Building Geography Index Released Highlights Single-Family Growth
The continued shortage of existing homes for sale has helped to keep new single-family construction growing across all regions. Single-family construction grew over all four quarters of 2024, showing resilience despite persistent factors that continue to affect housing affordability, including a limited supply of buildable lots, rising construction costs, and a shortage of skilled labor. This is according to the latest data released via the Home Building Geography Index (HBGI) by the National Association of Home Builders (NAHB). Multifamily construction remained lackluster but did feature some growth in lower density areas.
According to Eye On Housing, All HBGI-tracked geographies posted another quarter of growth in the fourth quarter after peaking in the second quarter. The HBGI is constructed using permit data, which has continued to post higher volumes than last year despite residential construction dealing with persistent structural issues.
Among the HBGI geographies, the highest growth in the fourth quarter of 2024 was registered in small metro core counties, which increased 10.3% year-over-year on a four-quarter moving average basis (4QMA). The market with the lowest level of growth was non metro/micro counties which were up 4.8% year-over-year (4QMA).
In terms of market share, single-family construction took place primarily in small metro core county areas, representing 29.1% of single-family construction. The smallest single-family construction market remained non metro/micro county areas, with a 4.2% market share.
