According to new data from the National Association of Home Builders (NAHB), the construction of new single-family homes is shifting away from large urban areas and towards smaller metro and non-metro areas. The report shows that over the past year, the share of new single-family homes built in small metro areas increased from 38% to 43%, while the share of homes built in non-metro areas increased from 18% to 20%.
This shift is likely due to a variety of factors, including rising home prices in urban areas, changing demographic trends, and the growing popularity of remote work. With more people working from home, many are choosing to move to more affordable areas with lower housing costs, better quality of life, and more outdoor space.
While this trend may be good news for those looking to buy or build a home outside of a large city, it could have implications for urban development and the broader economy. Cities may need to rethink their approach to housing and urban planning in order to remain competitive and attract new residents.
Overall, the shift towards smaller metro and non-metro areas is likely to continue in the coming years, as more people prioritize affordability, quality of life, and remote work options when choosing where to live. As a result, builders and developers may need to adjust their strategies to meet the changing needs of homebuyers and ensure that they are building in the right areas to meet demand.