According to the latest National Association of Home Builders (NAHB) Home Building Geography Index (HBGI), in Q2 of 2021 residential construction continued its shift towards the suburbs and lower-cost markets, and this trend is particularly evident within the multifamily sector.
HBGI is reporting that during this period, multifamily construction posted double-digit percentage gains in small metro core and suburban areas, while at the same time large metro areas experienced a decrease in multifamily building activity. The HBGI shows that multifamily residential construction increased by 14.3% in small metro urban cores and 25.5% in small metro suburban areas in Q2 of 2021.
In contrast, large metro core areas recorded a -0.5% year-over-year decline, reflecting the ongoing virus crisis’s baneful effects on housing in core counties of major metropolitan areas that started over a year ago.
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Q2 2021 HBGI: Multifamily Suburban Shift