FINDS SINGLE-FAMILY HOME GROWTH LIMITED TO EXURBAN AREAS

In the NAHB’s new Home Building Geography Index, a quarterly measure of building conditions across the country, the exurbs – defined in this index as “outlying counties of large metro areas with at least 1 million residents” – were the only region type to show net single-family permit growth from the first quarter of 2018 to the first quarter of 2019. Single-family permits grew by 1.6% in eurbs during this time frame.
The exurbs, small towns, rural communities and suburbs in small metropolitan markets have seen the largest single-family home growth over the past four quarters. All other areas have declined or shown no change.
“The HBGI data is consistent with the fact that housing costs are increasing fastest in large metro suburban counties and smaller metro areas with populations under 1 million where demand for housing is high but supply constraints are tight,” said NAHB Chief Economist Robert Dietz. “Supply-side issues that are hurting affordability and raising costs for builders include excessive regulations, labor shortages, rising material costs and a dearth of buildable lots in mid- to high population centers.”

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