According to the latest National Association of Home Builders (NAHB) Homebuilding Geography Index (HGI), the shift in multifamily construction, which started in Q2 2020, into less dense markets continued and accelerated in Q3 2020. This change is in step with changing geography for single-family home buildings, as housing demand moved to lower cost, more affordable locations. The HGI multifamily information confirms that the shift in demand is not limited to just single-family home construction but in all forms of residential real estate as the ongoing pandemic continues to shift traditional school and work to offsite learning and telecommuting. Traditionally, multifamily building market shares have been the highest for large metro area core (40%) and suburban counties (26%) and small metro area core counties (22%). That has not been the case in late Q2 and Q3 of 2020.
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Multifamily Construction Shifts to Lower Density Markets in 3Q20