Single-family market share continues to shift from large population centers

While nationwide single-family housing starts have slowed in the past year, the largest drop on a percentage basis is occurring in the densest counties, where housing costs are highest. Meanwhile, multifamily growth was robust throughout much of the nation at the end of 2022, with the notable exception in high-density markets, according to the latest findings from the National Association of Home Builders (NAHB) Home Building Geography Index (HBGI) for the fourth quarter of 2022.

“While the largest single-family market continues to be core counties of large and small metropolitan areas, the urban core market share has fallen compared to pre-Covid levels,” said Alicia Huey, NAHB chairman, a custom home builder and developer from Birmingham, Ala. “During the fourth quarter of 2019, urban core markets of small and large metro areas represented 47.2 percent of the single-family market. This share declined to 44.5% in the fourth quarter of 2022, representing a persistent shi