16.1% in large metro core counties
25.0% in large metro suburban counties
28.9% in small metro core counties
9.4% in large metro outlying counties
9.9% in small metro outlying areas
6.4% in micro counties
4.3% in non-metro/micro counties
“The strength in single-family construction at the start of the year continued in higher density areas, matching other data indicating a gain for townhouse construction at the start of 2024,” NAHB chief economist Robert Dietz explained.
While interest rates are still relatively high, the shortage of available homes for resale has pushed buyers toward new builds, helping sustain construction activity in these regions.
Multifamily struggles
While single-family construction is picking up, multifamily housing permits have fallen across the board. All seven geographic regions posted negative multifamily permit rates in the second quarter, with the NAHB Multifamily Production Index recording a reading of 44, down 12 points from the previous year.
The multifamily sector has been hampered by tight financing conditions and high levels of existing construction inventory, with nearly 900,000 units currently available. As a result, builders are scaling back on new projects.
Here’s how multifamily construction was distributed in the second quarter:
