Shift for Homes Built in Low-Density and Low-Cost Markets Since the Pandemic

By Na Zhao
NHAB – Eye on Housing
September 6, 2022
Category: Finance & Economics
Region: United States

The most recent Home Building Geography Index shows that home building activities have shifted to low-density and low-cost markets since the beginning of COVID-19. The market share for single-family constructions in large metro core and inner suburbs has declined from 44.5% to 41.6% from the 4th quarter of 2019 (pre-COVID), to the 2nd quarter of 2022. Housing demand has shifted from these higher density core areas to low density markets, where homes are larger and more affordable. Homebuyers desired more personal space for work-from-home and remote learning. …Declines in housing affordability also drove homebuyers to low-density outer markets. …Single-family home building in outer counties in large and medium sized metros expanded to a 19% market share in the 2nd quarter of 2022 from 17.4% in the pre-COVID period. Meanwhile, the market share of new single-family constructions in rural areas increased from 9.4% to 10.4%. Similar decentralizing trends also hold for multifamily home building.

Read More