New Home Building Trend Spotted in Smaller Metros

Slowed construction growth in larger metro areas has allowed for the activities in smaller cities and rural areas continues to increase.

According to Mortgage Professional America, single-family home buildings in big metro core and inner suburbs has declined from 44.5% to 41.6% from the fourth quarter of 2019 (pre-COVID) to the second quarter of 2022.

In contrast, single-family home building in outer suburbs in large and medium-sized metros has grown from 17.4% to 19% during the same period. Single-family home construction in small metro core counties rose from 28.8% to 29%, and home building market share in non-metro/micro counties was up from 9.4% to 10.4%.