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
Beginning Farmers and Ranchers, Crop Insurance, and a Business Planning Complication
RFD-TV Farm Legal and Taxation expert Roger McEowen joined us Friday to break down the executive order and what it means for farmers and ranchers.
Potash has seen the most significant decline, falling 11 percent over the same five-year period.
China’s buying decisions continue to be a critical factor in shaping cotton prices and export opportunities worldwide.
Secretary Rollins’ plan targets high costs, labor challenges, and export growth, delivering relief at home while building markets abroad.
Rising cow numbers and higher yields are boosting milk supplies, which may keep pressure on prices and farm margins into the fall.
Farm legal and taxation expert Roger McEowen explains the IRS’s shift to electronic payments and disbursements, and what it means for upcoming tax filings.
Estate tax relief reduces pressure, but succession planning remains the critical challenge for farm families.
Midwest corn and soy producers are monitoring for disease and lower yields due to the ongoing drought over the last 30 days.

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:

Benchmark machinery costs against those of similar-sized, high-performing operations to inform equipment and investment decisions.
Record pace corn exports are helping stabilize prices despite softer global grain production and ongoing supply competition.
Broader export demand helps stabilize prices and supports stronger marketing opportunities over time.
A narrower Section 1071 rule could reduce regulatory pressure on ag lenders while keeping credit available in rural communities.
Rising production underscores the importance of marketing discipline and margin protection as milk supplies expand.
The U.S. Forest Service takes us on the same journey from a tree farm in Nevada across America to experience the magic of Christmas in the U.S. Capitol.