Single-Family Construction Takes Off in Rural Communities

New single-family construction activity has declined across the U.S., but in some rural parts of the country, construction activity seems to be performing a bit better. According to data from the National Association of Home Builders, single-family construction fell in nearly every region during Q-2 2025, with the largest decreases seen in large metro counties.

The most construction growth has been seen in less densely populated areas

As single-family growth fell by about 3.8% large metros during Q-2 2025, the market share gains for non-large metro counties has grown. Less densely populated areas posted their highest combined market share since Q1 2023, holding 50.2% of the single-family market share in Q-2 2025.

Here’s how the market share actually breaks down:

• 15.8% in large metro core counties
• 24.5% in large metro suburban counties
• 9.5% in large metro outlying counties
• 29.3% in small metro core counties
• 10.1% in small metro outlying areas
• 6.6% in micro counties
• 4.3% in non-metro/micro counties

Homebuyer demand has also been growing in rural counties over the last few years

• Young Adults Are Flocking to Small Towns: Because of elevated prices in major cities and an increase in the number of hybrid and remote workers, young adults have become more interested in settling down in rural towns. 
• The Draw of the Exurb: Many Americans are heading to housing markets located as far as 60 miles from a major city.