Housing demand for not only single-family homes, but multifamily developments as well, continued to shift
to lower-density, more affordable markets in the third quarter of 2020
, according to data from the latest NAHB Homebuilding Geography Index (HBGI).
Multifamily construction has primarily occurred in large metro area core (40%), suburban counties (26%) and small metro area core counties (22%), with the former two experiencing drop-offs of 4.9% and 4.2%, respectively, as telecommuting and virus-related impacts have increased. In contrast, the market share for apartment construction in small metro core areas increased from 21.4% in the second quarter to 22.4% in the third quarter, with the largest gains in multifamily development occurring in small towns (19%) and rural areas (23%).
Read more on multifamily development trends, including NAHB's forecast for the coming year, in this Eye on Housing post