{"id":4669,"date":"2023-09-05T17:03:38","date_gmt":"2023-09-05T17:03:38","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2023\/09\/05\/single-family-construction-slows-across-the-country-in-q2\/"},"modified":"2025-03-13T02:52:49","modified_gmt":"2025-03-13T02:52:49","slug":"single-family-construction-slows-across-the-country-in-q2","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2023\/09\/05\/single-family-construction-slows-across-the-country-in-q2\/","title":{"rendered":"Single-family construction slows across the country in Q2"},"content":{"rendered":"\n<p><a href=\"https:\/\/preprod.housingwire.com\/articles\/housing-starts-tick-back-up-in-july-in-spite-of-headwinds\/\" target=\"_blank\" rel=\"noreferrer noopener\">Single-family home building<\/a> slowed across the country during the second quarter of 2023, thanks to <a href=\"https:\/\/preprod.housingwire.com\/mortgage-rates\/\" target=\"_blank\" rel=\"noreferrer noopener\">higher mortgage rates<\/a>, and <a href=\"https:\/\/preprod.realtrends.com\/blog\/articles\/are-homebuilders-too-pessimistic\/\" target=\"_blank\" rel=\"noreferrer noopener\">labor and supply shortages<\/a>, according to the <strong><a href=\"https:\/\/preprod.housingwire.com\/tag\/national-association-of-home-builders\/\" target=\"_blank\" rel=\"noreferrer noopener\">National Association of Home Builder\u2019s<\/a> <\/strong>(NAHB) <strong><a href=\"https:\/\/www.nahb.org\/news-and-economics\/housing-economics\/indices\/home-building-geography-index\" target=\"_blank\" rel=\"noreferrer noopener\">Home Building Geography Index<\/a><\/strong>.<\/p>\n\n\n\n<p><a href=\"https:\/\/preprod.housingwire.com\/articles\/single-family-construction-is-shifting-away-from-large-urban-areas\/\">The HBGI<\/a> is a quarterly measurement of building conditions across the county. It uses county-level data for single and multi-family permits to gauge housing construction growth in both urban and rural metros.<\/p>\n\n\n\n<p>\u201cThe latest HBGI data continue to show a changing geography for home construction,\u201d <a href=\"https:\/\/preprod.housingwire.com\/tag\/robert-dietz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Robert Dietz<\/a>, the NAHB\u2019s chief economist, said in a statement. \u201cMultifamily and single-family construction have shifted to lower-density markets, with market share gains for those types of markets. This is especially true for apartment construction, which has seen a segment share decline for large metro areas as development shifts to the suburbs and exurbs.\u201d&nbsp;&nbsp;<\/p>\n\n\n\n<p>Large metro core counties posted the lowest annual single-family home building growth rate at -24.8%. All large and small metro areas reported double-digit negative growth rates, while rural markets (defined as micro counties and non-metro counties) recorded single-digit negative growth rates.<\/p>\n\n\n\n<p>The share of single-family building has declined most notably in large metro areas (defined as core, suburban outlying), with these areas representing just 49.8% of all single-family building in the quarter. This share is a data series low, and it comes after seven consecutive quarters of decline. Single-family building in small metro core and outlying counties represented 38.4% of all building during the quarter, while 11.7% of single-family building occurred in micro and non-metro\/micro counties during Q2.<\/p>\n\n\n\n<p>Despite the declines, over the past four years, rural markets have shown resilience, as the single-family home building market share has risen from 9.4% at the end of 2019 to 12% earlier in 2023.<\/p>\n\n\n\n<p>Alicia Huey, the NAHB chairman, also believes that single-family construction has bottomed out.<\/p>\n\n\n\n<p>\u201cSingle-family production should register growth in the months ahead as the <strong><a href=\"https:\/\/preprod.housingwire.com\/tag\/federal-reserve\/\" target=\"_blank\" rel=\"noreferrer noopener\">Federal Reserve<\/a> <\/strong>nears the end of its tightening cycle and mortgage rates begin to stabilize,\u201d Huey said.&nbsp;<\/p>\n\n\n\n<p>In the second quarter of 2023, <a href=\"https:\/\/preprod.housingwire.com\/articles\/the-historic-multifamily-construction-boom-is-already-fading\/\" target=\"_blank\" rel=\"noreferrer noopener\">the multifamily sector<\/a> reported positive annual growth rates in just three markets, rising 26.6% in non-metro\/micro counties, 15.9% in large metro outlying counties and 3.1% in micro counties. Large metro core counties reported the lowest multifamily production growth rate, with a yearly drop of 10.6%. This is the third quarter in a row where this geographic area posted the lowest year-over-year growth rate. Since the start of the pandemic in Q1 2020, the market share of multifamily building in large metro counties has fallen from 42.2% to 37.4% in Q2 2023.<\/p>\n\n\n\n<p>After rising for the first seventh months of the year, <a href=\"https:\/\/preprod.housingwire.com\/tag\/homebuilder-confidence\/\" target=\"_blank\" rel=\"noreferrer noopener\">homebuilder confidence<\/a> declined in August, <a href=\"https:\/\/preprod.housingwire.com\/articles\/homebuilder-confidence-declines-for-the-first-time-in-2023-amid-7-rates\/\" target=\"_blank\" rel=\"noreferrer noopener\">dropping six points<\/a> from July to a reading of 50, as builders cited rising mortgage rates and a shortage of construction workers for reasons for the decline.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Single-family home building slowed across the country during the second quarter of 2023, thanks to higher mortgage rates, and labor and supply shortages.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-4669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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