Rising mortgage rates and elevated construction costs have led to a slowdown in single-family construction across the U.S., with the most pronounced deceleration in large metro areas. The four-quarter moving average of year-over-year growth in the single-family market was negative across the board during the second quarter of 2023.
From Q2 2022 to Q2 2023, single-family growth rates across all markets fell by double digits, with Large Metro – Core Counties posting the largest decline at -24.8%, the National Association of Home Builders' Eye on Housing reports.
Over the past four years rural markets have exhibited strength. The rural (Micro Counties and Non Metro/Micro Counties) single-family home building market share has increased from 9.4% at the end of 2019 to 11.7% by the second quarter of 2023. The combined market share for Large Metros (Core, Suburban, Outlying) remained below 50% for the second consecutive quarter as it was unchanged at 49.8%.
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