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
In a final rule published in the Federal Register, the Department states that it will no longer base wage rates on the Farm Labor Survey.
Jeramy Stephens, with National Land Realty, says that despite today’s economic headwinds, farmland remains a resilient asset — and understanding local conditions is key to making sound decisions.
Farmers will need to closely monitor forecasts if the regulatory changes are implemented, as temperature cutoffs will replace fixed spray dates.
Despite global improvement, food insecurity remains deeply concentrated in vulnerable regions.
USDA and EPA officials aim to maintain America’s robust food supply while ensuring farmers have access to key resources and crop protection tools.
Livestock and government payments provide a boost, but crop receipts and rising expenses keep pressure on margins. Strong financial planning remains key in a volatile environment.

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:

Congressional leaders signal momentum toward expanded, targeted farm aid to help producers manage losses and cash-flow stress in 2026.
Midland County Livestock Association President Brandon Mitchell reflects on another strong year for the event, including a premium sale that once again topped the million-dollar mark.
Livestock strength is carrying the farm economy, while crop margins remain tight and increasingly dependent on risk management and financial discipline.
Freight volatility and route selection remain critical to soybean export margins and competitiveness.
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.