As Buyers Seek Affordability, Exurbs Gain Appeal

October 3, 2019

Home buyers are extending their house hunts further from city centers, even to places beyond the suburbs. As home prices rise, more potential buyers are being pushed out to the exurbs as they search for lower housing costs and more new-home inventory.

The bulk of new-home construction is happening in the surrounding areas of both large and small metros, according to a new analysis from the National Association of Home Builders.

“These outlying areas have smaller population and a greater intensity of home building,” the NAHB notes on its blog, Eye on Housing.

In the second quarter, the regions with the largest per capita level of single-family construction were in outlying areas from large metros. Apartment construction has also seen an increase in these more affordable areas that are further out from the city’s core in both large and smaller metros.

“Being lower priced, housing in areas such as exurbs tend to be less sensitive to price changes,” the NAHB noted in May in reporting on its new Home Building Geography Index. “As land is more freely available and cheaper in the exurbs than suburbs, building permit activity in this regional geography” continues to increase.

NAHB exurb chart. Visit source link at the end of this article for more information.

© National Association of Home Builders

 

Source: 
Outlying Areas Show Most Home Building Per Capita,” National Association of Home Builders’ Eye on Housing blog (Oct. 1, 2019)