Suburbs of medium-sized cities recorded a 15% growth rate in home construction over the last four quarters, according to the National Association of Home Builders’ Home Building Geography Index. Meanwhile, large metro urban cores recorded the lowest regional gains, with a 5.7% increase.
"The growing demand in lower density markets stems from the fact that housing is less expensive compared to urban areas and buyers can afford larger homes to accommodate home offices, exercise rooms and other specialty rooms which are in higher demand since the pandemic," NAHB Chairman Chuck Fowke said in a statement. "However, builders continue to deal with affordability headwinds on the supply-side front, including the cost and availability of building materials."
Home prices have continued to increase during the pandemic.
