Since the onset of the COVID-19 pandemic, homebuilders have shifted from high-density, high-cost areas to lower density and lower cost areas, according to the National Association of Home Builders second quarter 2022 Home Building Geography Index (HBGI) report.
The index shows that the market share for single-family home building in large metro core areas and inner suburbs has fallen from 44.5% in the fourth quarter of 2019 to 41.6% in the second quarter of 2022. Meanwhile, single-family home building in outer suburbs in large and medium sized metros has expanded from 17.4% to 19% during the same period. Experts attribute the shift in homebuilding trends to migration patterns caused by the pandemic and increasing housing affordability issues.
“The geography of home building has shifted over the last two and half years, with more single-family and multifamily construction occurring in lower density markets,” Robert Dietz, the NAHB’s chief economist, said in a statement.
“This shift was first caused by the initial impact of Covid on housing demand, which favored lower density neighborhoods. The shift continued in recent months due to housing affordability conditions that are causing both prospective renters and buyers to expand their geographic search for housing, aided by hybrid work patterns that allow for a combination of remote and office work.”
Source: Real TrendsAny
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