Year-over-year single-family growth peaked in all small and large metro urban, suburban, and rural regional submarkets during the second quarter of 2021, and growth rates remained in the double-digits in the final months of the year, NAHBNow reports. Multifamily growth in the same markets has also been surging since the second quarter of 2021 as higher density markets take on an influx of housing demand. Despite rising demand, supply constraints are slowing new construction projects, and a lack of resale inventory is also aggravating a housing affordability crisis.
And while growth rates for single-family and multifamily production remained solid in the second half of 2021, [Robert] Dietz cited key factors why production activity for these types of housing were trending in opposite directions.
“Single-family home building activity surged in the wake of the Covid crisis, as interest rates fell and prospective home buyers sought more space,” said Dietz. “The rebound for multifamily construction lagged somewhat as housing demand had shifted to lower density markets. As some of that demand returns, a rebound for apartment building has occurred.”