Homebuilding Slowing More in High-Density Areas
NAHB: More single-family and multifamily construction is occurring in lower-density markets, in part because of affordability issues and hybrid work patterns.
WASHINGTON – Homebuilding has changed over the last two and half years, with the National Association of Home Builders’ (NAHB) Home Building Geography Index indicating more single-family and multifamily construction is happening in lower-density markets.
NAHB Chief Economist Robert Dietz attributed the shift to the COVID-19 pandemic’s initial effects on housing demand, which worked to the advantage of 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,” he explained.
Dietz added that housing affordability slowdowns in high-cost and highly regulated areas and rising interest rates are additional variables. NAHB's June index showed small towns to be the only area to see increased growth.
Source: GlobeSt.com (09/09/22) Bergeron, Paul
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