The construction of single-family homes was up nationwide in the second quarter of 2024, driven by low inventory and pent-up demand.
The National Association of Home Builders (NAHB) reported growth in single-family permits in all seven regions analyzed in its Home Building Geography Index (HBGI).
“Despite the elevated interest rate environment, single-family construction continues to move along at a better pace than 2023 and has been led by a rebound in construction activity in high density areas,” said NAHB Chairman Carl Harris, a custom home builder from Wichita, Kan.
As multifamily construction permit activity slowed in Q2 2024, single-family permits grew 17.6% in large metro core counties, and 3.4% in micro counties, according to the NAHB's report.
“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,” said NAHB Chief Economist Robert Dietz. “New data on second homes points to most housing construction taking place in areas with fewer second homes, as most second family homes are located in less urban areas such as non-metro counties.”
Using the latest government data on second homes, the HBGI found that 17.5% of single-family home construction occurred in second home areas during the second quarter. NAHB defines a second home area as a county where at least 10.3% of the total housing stock consists of a second home.
