The Q2 2024 Home Building Geography Index shows continued growth in single-family construction due to limited inventory and pent-up demand, while multifamily construction declines amid tighter financial conditions and high apartment construction levels. Both sectors face ongoing challenges from labor and supply shortages, along with higher mortgage rates.
According to the NAHB, the Home Building Geography Index (HBGI) is a quarterly measurement of building conditions across the country and uses county-level information about single-family and multifamily permits to gauge housing construction growth in various submarkets. The HBGI for the second quarter of 2024 focuses on the population density-based delineation of home building that has been the mainstay of the HBGI.
Key Findings for Q2 2024
- The year-over-year growth rates for all single-family markets further increased to positive territory, adding to the gains recorded in the first quarter. 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 remained negative for all markets, continuing the downward trend from last quarter. 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.
Regional Building Growth Conditions
NAHB classified all counties in the U.S. as one of seven regional categories based on population density and regional location. For each area, NAHB tracked single-family and multifamily growth rates (not seasonally adjusted) and market shares.
