A just-released survey by the National Association of Home Builders reveals that home building was significantly up in virtually all markets in the final quarter of last year, with what is classified as “small metro core counties” leading the way with a healthy 10.3% gain.
In its Home Building Geography Index for late 2024, the NAHB is reporting that home building was up anywhere from 4.8% to 10.3%, with urban areas in general showing more activity than non-urban areas.
In an analysis of the findings, the NAHB notes that the late 2024 numbers comprised the “fourth consecutive quarter during which the Home Building Geography Index for single-family continued to post positive results.”
By far, metro area communities saw the greatest growth, with large metro core communities seeing an increase of 6.9%, and large metro suburban areas up by 7.3%.
Further down the list, and just beyond the metro core, an 8.7% increase was recorded in what are defined as “small metro outlying areas,” while the “non-metro/micro counties” market was up by just under 5%.
Single-family building permits, meanwhile, were up by 30% over late 2023, while multifamily permits were off by that same figure.
Despite the strong late 2024 numbers, says the NAHB narrative, conditions in 2025 are anything but certain: “Tailwinds of an easing regulatory environment and tax cuts could help spur construction,” but “headwinds of higher government deficits and potential tariffs” hold the potential of offsetting such advantages.
The latest January figures, as released by the U.S. Census Bureau, show just under 1.5 million in building permits nationally, with housing starts at 1.3 million, and housing completions coming in at just over 1.5 million.
March 6, 2025
By Garry Boulard
Photo courtesy of Unsplash
