The National Association of Home Builders (NAHB) report that their Home Building Geography Index (HBGI) is continuing to show a shift in the market for home building this quarter. This is the 30th consecutive month in which this trend has been identified, and the NAHB says that it points to slowing in high-cost and high-regulation areas due to declining housing affordability caused by ongoing inflation.

 

The HBGI shows that the market for single-family house building in these high-density areas has dropped from 44.5% to 41.6% from pre-Covid to the second quarter of 2022. NAHB Chairman, Jerry Konter summarized the findings, "Looking at the last 12 months, single-family production has slowed in all regional submarkets, both large and small, due to ongoing building material production bottlenecks, construction labor shortages, and the Federal Reserve's tightening monetary policy."

https://www.nahb.org/news-and-economics/press-releases/2022/09/shift-in-single-family-home-building-toward-smaller-markets-continues