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
National Land Realty’s Jeramy Stephens shares his outlook on farmland market trends, which remain under close watch as new federal assistance programs roll out — with experts analyzing potential impacts on land values, buying, and stability.
Jeff Johnston with CoBank’s Knowledge Exchange explains the growing role of Rural America in supporting the nation’s digital infrastructure.
NRECA CEO Jim Matheson reacts to the U.S. House’s passage of the SPEED Act, which aims to streamline federal permitting for energy and infrastructure projects, and discusses its potential impact on rural communities.
Lower milk prices may pressure margins, but strong cattle values could soften near-term financial impacts.
The Pet and Livestock Protection Act now moves to the Senate for consideration.
A new maritime biofuels coalition aims to position ocean shipping as a significant growth market for U.S. crops and waste-derived fuels.
Transportation access, legal disputes, and fertilizer freight costs will directly influence input pricing and grain movement in 2026.

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:

Weston Brown joined us on Monday in the RFD-TV Studios in Nashville to share how he is preparing for the upcoming National FFA Convention & Expo.
Missouri Director of Agriculture Chris Chinn joined us Monday to share highlights from Secretary Brooke Rollins’ visit and her perspective on USDA’s new initiatives.
RFD-TV Farm Legal and Taxation expert, Roger McEowen, with the Washburn School of Law, joined us Monday to break down the changes and explain what producers should know.
North Dakota Farmers Union (NDFU) President Mark Watne joined us Monday to share his perspective on the America First Trade Promotion Program and potential implications for producers.
Dividing up a family farming operation can be challenging, especially for children who may not want to become farmers themselves.
A booming butterfat market is good for some dairy products but threatens efficiency and margins for cheesemakers unless protein levels catch up