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
Strong balance sheets still matter, but liquidity, planning, and lender relationships are critical as ag credit tightens, according to analysis from AgAmerica Lending.
Protein-driven dairy growth is boosting beef supply potential, creating an opening to support rural jobs and ground beef availability.
In a landmark ruling delivered in late 2025, the U.S. Supreme Court significantly narrowed the scope of the National Environmental Policy Act.
RFD NEWS Correspondent Frank McCaffrey speaks with Texas’s Sen. Ted Cruz and Rep. Vicente Gonzalez about USMCA renegotiation and its impact on U.S.–Mexico agriculture trade.
Rising rural business confidence supports local ag economies, but taxes and labor shortages remain key constraints.
CoBank Knowledge Exchange’s Jeff Johnston shares the group’s positive perspective on expanding data centers into rural areas and weighs the risks and rewards for those communities.
Texas Commissioner of Agriculture Sid Miller joined us to discuss data center expansion, farmland preservation, rural economic impacts, and imminent cattle biosecurity concerns affecting agriculture today.
Wind repowering offers a rare opportunity to renegotiate outdated leases and improve long-term land income for landowners who act early.
Rep. Erin Houchin of Indiana discusses how the Affordable Homes Act will benefit rural communities, and her broader efforts to improve access to affordable housing.

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:

Rising import pressure and tougher export competition are likely to persist into 2026, supporting domestic supplies while capping export growth.
Without additional support, many soybean operations will continue to face financial stress as they prepare for the 2026 crop.
Placements and marketings beat expectations, but declining on-feed totals and feeder constraints keep the supply story supportive for cattle prices into 2026. Dr. Derrell Peel, with Oklahoma State University, joined us to break down cattle-on-feed numbers and provide his broader market outlook.
USDA Rural Development Director for Kentucky, Travis Burton, joined us to discuss the Princeton facility (formerly Porter Road Meats), now backed by the USDA, and its role in expanding domestic meat processing capacity.
Farm CPA Paul Neiffer joined us to break down the recent Fifth Circuit Court decision overturning a prior Tax Court decision on self-employment tax for limited partners, the ruling’s impact on farmers, and potential next steps in Congress.
Americans for Prosperity Arkansas Director Ryan Norris talks energy infrastructure, regulatory reform, and the role of critical minerals in supporting rural America.