Construction Statistics Archives - Page 2 of 2

June Private Residential Construction Spending Edges Higher

Na Zhao2025-09-02T11:15:45-05:00

Private residential construction spending inched up 0.1% in June, registering the first monthly gain after six consecutive declines. This modest increase was primarily driven by more spending on single-family construction and home improvements. Despite this increase, total spending was 5.3% lower than a year ago, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates. According to the latest U.S. Census Construction Spending data, single-family construction spending edged up 0.1% in June, in line with the slight improvement reflected in the July NAHB/Wells Fargo Housing Market Index (HMI). Compared to a year ago, single-family construction spending decreased by 2.1%. Improvement spending (remodeling) was up 0.1% for the month but remained 7.6% lower than in June 2024. Meanwhile, multifamily construction spending slipped 0.4% in June, continuing the downward trend that began in mid-2023. Compared to a year earlier, multifamily spending was down 9.4%. The NAHB construction spending index is shown in the graph below. The index illustrates how spending on single-family construction has slowed since early 2024 under the pressure of elevated interest rates and concerns over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in July 2023. Improvement spending has also been weakening since the beginning of 2025. Spending on private nonresidential construction was down 3.7% over a year ago. The annual private nonresidential spending decrease was primarily driven by a $16 billion drop in commercial construction spending, followed by a $12.2 billion decrease in commercial construction spending. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

June Private Residential Construction Spending Edges Higher Na Zhao2025-09-02T11:15:45-05:00

NAHB HBGI: Relative Gains for Smaller Markets, Particularly for Multifamily

Jesse Wade2025-09-02T09:21:24-05:00

Single-family construction declined in the second quarter of 2025 for almost all tracked markets, according to the NAHB Home Building Geography Index (HBGI). Meanwhile, multifamily construction continued to expand in low population density markets, which have shown remarkable strength due to for-sale affordability challenges. The HBGI tracks single-family and multifamily permits across seven population density delineated geographies in the United States. Single-Family Home Building Among the HBGI markets, growth in the second quarter of 2025 was only registered in micro counties, which increased 1.8% year-over-year on a four-quarter moving average basis (4QMA). Most markets reported declines, with the largest occurring in large metro suburban counties, posting a decline of 3.8%. The drop in growth across the markets remains high, as five markets had single-family growth near 15% just one year ago. In terms of market share, single-family construction’s largest geography was small metro core county areas, representing 29.3% of single-family construction. The smallest single-family construction market remained non metro/micro county areas, with a 4.3% market share. As the largest declines in single-family construction over the past year occurred in large metro areas, smaller population and less densely populated counties have gained single-family construction market share. The combined market share of these smaller areas (excluding large metro areas), reached its highest level since the first quarter of 2023 (50.3%), marking 50.2% in the second quarter. Multifamily Home Building The largest gains for multifamily construction occurred in small metro outlying counties, growing 22.1% (4QMA) in the second quarter. This was the first time that small metro outlying counties had the largest gain among geographies since the second quarter of 2022, when it rose 29.6%. The largest decline was in large metro core counties declining 12.3%. The market share of multifamily construction for smaller markets has continued to climb since the pandemic. The loss in market share for large metro core counties, which continues to make up the bulk of multifamily construction, has mostly been absorbed by small metro core counties. The market share for small metro core counties is up 4.3 percentage points from the first quarter of 2020 to 24.9%. If this trend continues, small metro core counties could overtake large metro suburban counties for the second highest market share in the multifamily construction market as the gap between the two continues to shrink. The second quarter of 2025 HBGI data along with an interactive HBGI map can be found at http://nahb.org/hbgi. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

NAHB HBGI: Relative Gains for Smaller Markets, Particularly for MultifamilyJesse Wade2025-09-02T09:21:24-05:00

Wood-Framed Home Share Increased in 2024

Jing Fu2025-08-27T08:27:12-05:00

Wood framing continues to dominate the U.S. single-family home construction market, according to NAHB analysis of 2024 Census Bureau data. In 2024, wood framing accounted for 94% of all completed single-family homes, reinforcing its position as the leading construction method. Concrete-framed homes represented 5% of completions, while steel-framed homes remained relatively rare, comprising less than half a percent of the market. On a count basis, approximately 959,000 wood-framed homes were completed in 2024. This was a 3% increase compared to the 2023 total. This growth also marked a rebound in market share, with wood-framed market share rising from 93% in 2023 to 94% in 2024. Steel-framed homes, while still uncommon, experienced notable growth. About 4,000 steel-framed homes were completed in 2024, representing a 33% increase from the previous year. Meanwhile, concrete-framed homes saw a decline. Their market share decreased from 7% in 2023 to 5% in 2024. On a count basis, 55,000 concrete-framed homes were completed in 2024, a 15% decrease compared to the prior year. Non-wood based framing methods are primarily concentrated in the South due to residential resiliency requirements. In 2024, concrete-framed homes made up 9% of all single-family home completions in the South. Additionally, nearly 95% of all steel-framed homes completed in 2024 were built in the South, highlighting the region’s distinct building trends. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Wood-Framed Home Share Increased in 2024Jing Fu2025-08-27T08:27:12-05:00

Multifamily Missing Middle Trends

Robert Dietz2025-08-25T12:14:48-05:00

The missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties. The multifamily segment of the missing middle (apartments in 2- to 4-unit properties) has generally disappointed since the Great Recession. For the second quarter of 2025, there were 5,000 2- to 4-unit housing unit construction starts. This represents a small increase relative to the second quarter of 2024. Over the last four quarters this type of construction totaled 21,000 units, up 50% over the four quarters prior to that period (14,000). As a share of all multifamily production, 2- to 4-unit development was just 4% of total multifamily development for the second quarter. This remains lower than recent historic trends. From 2000 to 2010, such home construction made up a little less than 11% of total multifamily construction. Construction of the missing middle has clearly lagged during the post-Great Recession period and will continue to do so without zoning reform focused on light-touch density. But recent gains offer hope for additional housing supply for these kind of homes. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Multifamily Missing Middle TrendsRobert Dietz2025-08-25T12:14:48-05:00

Multifamily Built-for-Rent Share

Robert Dietz2025-08-25T08:15:28-05:00

According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased during the second quarter of 2025. For the quarter, 109,000 multifamily residences started construction. Of this total, 102,000 were built-for-rent. This built-for-rent total was 21% higher than the second quarter of 2024. The market share of rental units of multifamily construction starts was 94% for the second quarter. A historical low market share of 47% for bult-for-rent multifamily construction was set during the third quarter of 2005, during the condo building boom. An average share of 80% was registered during the 1980-2002 period. For the second quarter, there were 7,000 multifamily condo unit construction starts, an increase from a year ago. An elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-Great Recession period. However, according to the second quarter 2025 data, the average square footage of multifamily construction starts increased to 1,077 square feet. The median increased to 1,092 square feet. Multifamily unit size is tending higher as the market captures priced-out buyers from the single-family for-sale market. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Multifamily Built-for-Rent ShareRobert Dietz2025-08-25T08:15:28-05:00

Single-Family Home Size: 2Q25 Data

Robert Dietz2025-08-22T12:19:51-05:00

An expected impact of the virus crisis was a need for more residential space, as people used homes for more purposes including work. Home size correspondingly increased in 2021 as interest rates reached historic lows. However, as interest rates increased in 2022 and 2023, and housing affordability worsened, the demand for home size has trended lower. According to second quarter 2025 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area was 2,125 square feet, a decline from the start of the year. Average (mean) square footage for new single-family homes registered at 2,364 square feet. The average size of a new single-family home, on a one-year moving average basis, was flat at 2,386 square feet, while the median size declined to 2,162 square feet. Home size increased from 2009 to 2015 as entry-level new construction lost market share. Home size declined between 2016 and 2020 as more starter homes were developed. After a brief increase during the post-COVID building boom, home size has trended lower due to declining affordability conditions. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Single-Family Home Size: 2Q25 DataRobert Dietz2025-08-22T12:19:51-05:00

June Single-Family Permits Slumps, Multifamily Gains

Danushka Nanayakkara-Skillington2025-08-15T09:17:49-05:00

Single-family housing permits continued a downhill trend for the sixth month in a row. The continuous decline in single-family permits highlights persistently weak housing demand, tied to affordability challenges like high mortgage rates. Builders appear cautious amid economic uncertainty, labor constraints, and rising inventories. The uptick in multi-family permits suggests a potentially stabilizing trend, though it’s important to note its volatility. The housing market’s mixed signals—weak single-family coupled with some resilience in multi-family—could mean continued drag on residential investment and the broader economy this year. Over the first six months of 2025, the total number of single-family permits issued year-to-date (YTD) nationwide reached 485,935. On a year-over-year (YoY) basis, this is a decline of 5.6% over the June 2024 level of 514,728. For multifamily, the total number of permits issued nationwide reached 244,812. This is 2.9% higher compared to the June 2024 level of 237,935. Year-to-date ending in June, single-family permits were up in one out of the four regions. The Midwest posted a small increase of 1.8%. The Northeast was 1.7% lower, the South was down by 6.5%, and the West was down by 8.1% in single-family permits during this time. For multifamily permits, three out of the four regions posted increases. The Midwest was up by 22.4%, the West was up by 8.0%, and the South was up by 7.1%, Meanwhile, the Northeast declined steeply by 30.0%, driven by the New York-Newark-Jersey City, NY-NJ MSA which declined by 40.0%. Between June 2025 YTD and June 2024 YTD, 15 states posted an increase in single-family permits. The range of increases spanned 19.9% in Hawaii to 0.2% in Kentucky. The remaining 35 states and the District of Columbia reported declines in single-family permits with the District of Columbia reporting the steepest decline of 24.2%. The ten states issuing the highest number of single-family permits combined accounted for 63.0% of the total single-family permits issued. Texas, the state with the highest number of single-family permits, issued 78,104 permits over the first six months of 2025; this is a decline of 8.0% compared to the same period last year. The second highest state, Florida, decreased by 10.6%, while the third highest, North Carolina, posted a decline of 0.9%. Between June 2025 YTD and June 2024 YTD, 29 states recorded growth in multifamily permits, while 21 states and the District of Columbia recorded a decline. Iowa (+165.5%) led the way with a sharp rise in multifamily permits from 1,178 to 3,128, while Alabama had the largest decline of 49.6% from 1,788 to 901. The ten states issuing the highest number of multifamily permits combined accounted for 61.8% of the multifamily permits issued. Over the first six months of 2025, Florida, the state with the highest number of multifamily permits issued, experienced an increase of 25.0%. Texas, the second-highest state in multifamily permits, saw an increase of 14.1%. California, the third largest multifamily issuing state, increased by 11.5%. At the local level, below are the top ten metro areas that issued the highest number of single-family permits. For multifamily permits, below are the top ten local areas that issued the highest number of permits. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

June Single-Family Permits Slumps, Multifamily GainsDanushka Nanayakkara-Skillington2025-08-15T09:17:49-05:00

Market Share for Modular and Other Non-Site Built Housing in 2024

Danushka Nanayakkara-Skillington2025-08-11T09:17:25-05:00

The total market share of non-site built single-family homes (modular and panelized) was just 3% of single-family homes in 2024, according to completion data from the Census Bureau Survey of Construction data and NAHB analysis. This is the same as the 3% share in 2023. This share has been steadily declining since the early-2000s despite the high-level of interest for non-site built construction. This low market share in fact runs counter to some media commentary on off-site construction suggesting recent gains. Nonetheless, there exists potential for market share gains in the years ahead due to the need to increase productivity in the residential construction sector. In 2024, there were 28,000 total single-family units built using modular (13,000) and panelized/pre-cut (15,000) construction methods, out of a total of 1,019,000 single-family homes completed. It is worth noting that the Census definitions of off-site construction are relatively narrow. In a separate survey, the Home Innovation Research Labs Survey of U.S. Home Builders has a higher share for panelized construction (5-12%) due to a wider definition of “panelized” construction. While the Census-measured market share is small, there exists potential for expansion. This 3% market share for 2024 represents a decline from years prior to the Great Recession. In 1998, 7% of single-family completions were modular (4%) or panelized (3%). This marked the largest share for the 1992-2024 period. One notable regional concentration is found in the Midwest and the Northeast. These two regions have the highest market share of homes built using non-site build methods. In the Midwest, 7% (8,000 homes) of the region’s 136,000 housing units were completed using these methods. In the Northeast, 5% (3,000 homes) of the region’s 66,000 housing units were completed using non-site build methods. However, numerically, the South continues to be the biggest market for this type of construction where 13,000 homes were built using non-site build methods. With respect to multifamily construction, approximately 3% of multifamily buildings (properties, not units) were built using modular and panelized methods. This is significantly lower than the 7% share in 2023 but on par with the average for the last 5 years. It is notable that modular construction method accounted for 2% of this share. In previous years it was only panelized construction methods that made up the higher share of non-site build methods in multifamily construction. Prior to last year, the highest levels of modular and panelized methods share in multifamily construction was in 2000 and 2011, where 5% of multifamily buildings were constructed with modular (1%) or panelized construction methods (4%). Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Market Share for Modular and Other Non-Site Built Housing in 2024Danushka Nanayakkara-Skillington2025-08-11T09:17:25-05:00

Foundation Types in 2024: Slabs Continue to Rise, Crawl Spaces Decline

Catherine Koh2025-08-08T14:16:32-05:00

In 2024, 73% of new single-family homes started were built on slab foundations, according to NAHB analysis of the U.S. Census Bureau’s Survey of Construction (SOC). Although this was a modest year-over-year increase of 0.6 percentage points, it continues the upward trend in slab adoption, widening the gap between slabs and other foundation types. In comparison, basements (full or partial) accounted for 17% of new homes, while crawl spaces made up just 9.2%. Foundation type continues to follow regional climate patterns. In colder northern divisions, where foundations to extend below the frost line, basements are more common. In 2024, the majority of homes in New England (67.2%), West North Central (62.3%), East North Central (50.3%), and the Middle Atlantic (48.8%) were built with full or partial basements. Among these, East North Central (1,119 sq. ft.) and the Middle Atlantic (1,113 sq. ft.) had the largest average finished basement areas, both exceeding the national average of 1,112 sq. ft. West North Central followed with 940 sq. ft., and New England averaged 810 sq. ft. In contrast, warmer regions favor slab foundations for their affordability and efficiency. Nearly all new single-family homes in West South Central (97.9%), Pacific (89.9%), and South Atlantic (85.7%) divisions were built on slabs in 2024. The cost advantages of slabs have also led to increased adoption in some northern divisions – especially post-pandemic, as rising material costs and supply chain disruptions pushed builders to prioritize cost-effective construction methods. Crawl space foundations have seen a long-term decline. While East South Central and Pacific divisions have historically led in crawl space usage, both have experienced noticeable decreases, particularly the Pacific, which saw a sharp drop in the past decade. Interestingly, the Mountain division has seen a gradual rebound in crawl space use, now ranking second in crawl space share. Meanwhile, divisions such as East North Central, New England, and West South Central have consistently maintained shares of new homes started below 10%, reflecting persistent regional preferences. Notably, the West North Central division surpassed the 10% threshold in 2024 after several years of incremental growth, although it remains unclear whether this marks a lasting shift or a one-time fluctuation. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Foundation Types in 2024: Slabs Continue to Rise, Crawl Spaces DeclineCatherine Koh2025-08-08T14:16:32-05:00

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