Single-Family Production Up; Multi-Family Down

Single-Family Production Up; Multi-Family Down

Single-family home construction surged in the second quarter of 2024, driven by a shortage of resale homes and strong demand, according to The National Association of Home Builders. Meanwhile, multifamily construction dropped due to financing challenges and high inventory. Suburban and less urban areas led single-family permit growth, while multifamily projects declined across all regions. Additional findings:

• Single-family permits rose in all regions (+17.6%).

• Telework trends and demand for affordable areas supported growth.

• Second home construction increased significantly over the past decade.

Ralph’s Take

This is a positive outlook for the single-family housing market, noting significant growth in construction across all regions, particularly in suburban areas. The decline in multifamily construction points to a shift in demand, with single-family homes taking the lead. Overall, this is positive momentum in housing development which is crucial for addressing housing needs and creating opportunities for homebuyers in more affordable areas.