Rural Housing Sees Modest Growth Despite Market Slowdown

For rural communities, this shift could mean new housing options for farmworkers and young families priced out of metro markets.

WASHINGTON (RFD-TV) — 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 percent, while rural “micro counties” bucked the trend, recording a 1.8 percent increase — their fifth straight quarter of growth. Collectively, less densely populated regions captured just over 50 percent 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 percent gain in multifamily permits, while large metro cores posted their ninth consecutive quarterly decline.

Tony’s 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.
Related Stories
Before you turn the calendar to 2025, take a few moments to think through a few important tax planning matters for your farm or ranch.
John Deere is cutting 100 positions from its Waterloo Works plant in 2025, and Butterball will cut 200 positions in Jonesboro, Ark.
Legal issues can arise for farmers and ranchers when conducting business informally or in another state. RFD-TV Ag Law & Tax Expert Roger McEowen explores both topics in his latest Firm to Farm blog post.
RFD-TV ag law and tax expert Roger McEowen with the Washburn School of Law dives into common disputes over boundaries and conflicting surveys in agriculture.
Key legal & tax insights for farmers, like accumulated earnings tax, using 401(k) to start farming, ag data in court, and maximizing farm home-sale exclusions when selling your farm.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Record yields and exceptionally low BCFM strengthen U.S. corn’s competitive position in global markets.
Water access—not acreage alone—is driving where irrigation expands or contracts.
Credit stress is building for row-crop farms despite steady land values and slight price improvements.
The Lexington shutdown pushes national slaughter capacity utilization nearer long-run averages, underscoring how tight cattle supplies are reshaping packer operations.
Raulston Acres Christmas Tree Farm in Rock Springs, Ga., has been in the same family for three generations.