Construction of single-family homes fell across several market types in Q1 2022, with an especially large dip in large suburban markets, according to the National Association of Home Builder’s (NAHB) Home Building Geography Index (HBGI). Four-quarter moving average single-family growth rates in large metro suburban counties fell from 18.7% in Q1 2021 to 5.2% in Q1 2022. At the same time, multifamily construction in large metros has jumped after falling during the pandemic. Large metro core counties recovered from a negative 3.6% growth rate to a 17.4% rate. Multifamily construction was largely centered in large metro core areas (36.9% of development), followed by large metro suburbs (25.8%), small metro core areas (23.5%), and other submarkets (13.7%). “Single-family growth rates have…
Mortgage applications for new home purchases fell 12.5% year-over-year in January 2022, according to the Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS). However, applications rose by 10% from December 2021, as MBA estimates 66,000 new homes were sold in January compared to December’s 60,000. MBA estimated that new single-family sales were running at a rate of 821,000 units, down 7.4% from December’s 887,000 unit pace. “Purchase applications for new homes fell on an annual basis in January, but the 10% monthly gain is a positive sign to start the year. While homebuyer demand remains strong, purchase activity is being constrained by higher prices and building delays due to supply-chain pressures and building materials shortages,” said Joel Kan, MBA’s Associate…
Freddie Mac’s annual multifamily outlook projects another strong year, with rents continuing to increase despite an overall moderating market. The report projects that the Sun Belt will outperform slow-growing smaller markets in the Northeast and Midwest. “We believe the market will continue to grow in 2022, reflecting the strong multifamily fundamentals that drove the market to a record-breaking year in 2021,” said Steve Guggenmos, vice president of Multifamily Research & Modeling at Freddie Mac. “We anticipate rent growth in all markets in 2022 due to strong demand driven by improving economic conditions.” Growth broke records in 2021 thanks to changing migration patterns and strong economic conditions. Multifamily demand reached its highest ever levels during Q2 and Q3 of 2021, and…
