【World Property Journal】Smaller U.S. Cities to Get Building Boost from Coronavirus Outbreak

Based on NAHB's latest quarterly National Association of Home Builders Home Building Geography Index, the COVID-19 pandemic is likely to hasten a housing trend already taking place across the nation--residential construction activity that is expanding at a more rapid rate in lower density markets such as smaller cities and rural areas. Multifamily development is also proceeding at a brisk pace in areas where education and health services dominate.

"We expect the virus could affect future housing preferences for those currently living in the hardest-hit, high-density environments like central cities and that housing demand will continue to increase in medium- and low-density communities," said NAHB Chairman Dean Mon, a home builder and developer from Shrewsbury, N.J.

"The first quarter HBGI data reveals that construction growth expanded over the last year more quickly in low population density areas than high-density regions," said NAHB Chief Economist Robert Dietz. "This trend will continue as households seek out single-family homes further from urban cores, particularly as telecommuting continues in greater numbers."

An unavoidable lesson of the public health crisis associated with COVID-19 is that major metropolitan areas faced greater challenges. High-density lifestyles, championed by some urban planners over the last decade as a rival to suburban living, proved to be vulnerable to a virus due to crowded living conditions, dependency on mass transit, and insufficient health and public sector infrastructure.

The HBGI found that even before the pandemic hit, home construction activity was increasing at a higher rate in inner and outer suburbs than in high-density markets.
 

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