WASHINGTON, DC – U.S. housing construction slowed in the second quarter of 2025, with single-family permits declining in nearly every region, according to the National Association of Home Builders (NAHB). Large metro areas posted the sharpest decline at 3.8%, while rural “micro counties” bucked the trend, recording a 1.8% increase — their fifth straight quarter of growth. Collectively, less densely populated regions captured just over 50% of the single-family market share, their highest level since early 2023.
NAHB leaders cite high mortgage rates, labor shortages, and regulatory costs as barriers to new single-family construction. At the same time, multifamily construction has expanded in smaller and rural counties, benefiting from lower land costs and lighter regulations. Small metro outlying areas led with a 22% gain in multifamily permits, while large metro cores posted their ninth consecutive quarterly decline.
Farm-Level Takeaway: While big-city housing starts are slowing, rural and small-market counties are gaining share in both single- and multifamily construction. For rural communities, this shift could mean new housing options for farmworkers and young families priced out of metro markets.