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 2025 focuses on the population density-based delineation of home building that has been the mainstay of the HBGI.

Key Findings for Q1 2025

• Single-family construction growth slowed in the first quarter, with a few markets moving into negative territory.
• Economic uncertainty was the main driver of fluctuations in single-family construction, as building material cost unpredictability and higher mortgage rates delayed new housing projects.
• Multifamily construction was negative across high-density areas but showed remarkably strong growth in areas of low population density.
• The small metro areas have continued to gain market share of multifamily construction since the pandemic.

Labor shortages and higher mortgage rates continue to be issues for the single-family and multifamily markets in first quarter of 2025. Tailwinds of an easing regulatory environment and tax cuts could help spur construction, but headwinds of higher government deficits and potential tariffs may offset gains from any positives in the coming year.

Download the data file of the full HBGI findings

Regional Building Growth Conditions

NAHB classified all counties in the U.S. as one of seven regional categories based on population density and regional location. For each area, NAHB tracked single-family and multifamily growth rates (not seasonally adjusted) and market shares.