Home Building Geography Index (HBGI)
The Home Building Geography Index (HBGI) is a quarterly measurement of building conditions across the country and uses county-level information about single-family and multifamily permits to gauge housing construction growth in various submarkets. The HBGI for the first quarter of 2024 focuses on the population density-based delineation of home building that has been the mainstay of the HBGI.
Key Findings for Q1 2024:
- The year-over-year growth rates for all single-family markets increased to positive territory for the first time since 2021. This positive news was fueled by the limited amount of existing inventory and pent-up demand for single-family construction.
- In the multifamily sector, growth rates moved negative for all markets for the first time in the HBGI’s history. With over 900,000 apartments currently under construction (the most since 1973) and tighter financial conditions, multifamily construction is slowing from the last year’s highs.
- Labor shortages, supply shortages and higher mortgage rates continue to be issues for both the single-family and multifamily markets.