Single-Family Construction Sees Continued Growth

Despite ongoing challenges, single-family construction ended 2024 strong. According to the National Association of Home Builders’ Home Building Geography Index for Q4 2024, single-family inventory improved in all regions of the U.S. While new housing construction in all areas of the nation reported growth, single-family construction was the most prevalent in small metro core counties and large metro suburban counties. There, the share of single-family home building in Q4 2024 was 29.1% and 24.7% of total new-home construction, respectively. This growth was primarily driven by a lack of existing single-family housing, and steady growth through the beginning of 2025 could bode well for the remainder of the year.

“Single-family construction has been holding remarkably steady, despite elevated mortgage rates and tight lending standards for construction and development loans,” said NAHB Chief Economist Robert Dietz. “Upside and downside risks will become clearer as the new year progresses. An easing regulatory environment and tax cuts could act as tailwinds but tariffs and potentially higher deficits could dampen market momentum. Additionally, a growing trend away from work-from-home could increase building activity in inner suburbs in the quarters ahead.” Read more