Multifamily Construction Shifts to Lower-Density Markets
Housing demand for not only single-family homes, but multifamily developments as well, continued to shift to lower-density, more affordable markets in the third quarter of 2020, according to data from the latest NAHB Homebuilding Geography Index (HBGI).
Multifamily construction has primarily occurred in large metro area core (40%), suburban counties (26%) and small metro area core counties (22%), with the former two experiencing drop-offs of 4.9% and 4.2%, respectively, as telecommuting and virus-related impacts have increased. In contrast, the market share for apartment construction in small metro core areas increased from 21.4% in the second quarter to 22.4% in the third quarter, with the largest gains in multifamily development occurring in small towns (19%) and rural areas (23%).
Read more on multifamily development trends, including NAHB’s forecast for the coming year, in this Eye on Housing post.
*Note: All articles have been redistributed from NAHBnow.com*