Despite economic challenges and regulatory hurdles, a shortage of existing homes for sale continued to propel single-family construction growth in all geographic regions last year. This is according to the National Association of Home Builders (NAHB) Home Building Geography Index (HGBI), which uses county-level information about single- and multifamily permits to gauge housing construction growth in urban and rural geographies.
The single-family market has logged four consecutive quarters of growth across the index’s seven key geographic and high- and low-density areas, NAHB said. Continued positive construction growth and potential Fed rate cuts this year could help spur new construction and normalize the pace of single-family home building, said the association.
“Single-family construction has been holding remarkably steady, despite elevated mortgage rates and tight lending standards for construction and development loans,” said NAHB chief economist Robert Dietz. “Upside and downside risks will become clearer as the new year progresses.”
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