In their search for affordability, home buyers are taking their house hunts further out from the city limits. Exurbs are the outskirts of major metro areas that lie beyond the suburbs. Many offer more land and greater affordability in new-home construction.
Single- and multifamily activity in the exurbs makes up only a small share of permit activity across the country, but their quarterly growth rates reached a new high in the first quarter of 2019, according to the National Association of Home Builders’ new Home Building Geography Index. Single-family permit activity has posted a 5.6% year-over-year growth rate, which is higher than that for large metro areas and suburbs, the index reveals.