Residential Construction Continues its Shift Towards the Suburbs and Lower-Cost Market in Q2 2021
Q2 2021 HBGI: Multifamily Suburban Shift
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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