Single-Family Construction Activity Grows in Rural Counties

Single-family construction activity declined across the U.S. in Q-4 2025, but micro-counties—defined as sparsely populated counties that are centered around small towns with 10,000 to 50,000 residents—continue to be a bright spot for the industry. According to the National Association of Home Builders’ Home Building Geography Index, micro-counties saw single-family construction growth while larger, more populous areas saw construction activity decline. 

Micro-counties were the only geographic designation to see growth

Among the geographic categories defined in the report, micro-counties were the only type to see single-family construction activity grow. In micro-counties, single-family construction activity inched up by 1.6% year-over-year. This was the seventh consecutive quarter where micro-counties showed growth. All other markets reported declines At 12.8%, the largest decline occured in large metro core counties.

Meanwhile, multifamily construction activity grew across geographic markets 

When it comes to the multifamily market, micro-counties also experienced the most growth in Q-4 2025 at 14%. However, other geographic designations also saw growth, unlike in the single-family market. Small metro outlying counties saw multifamily construction activity increase by 11.6% year-over-year. At just 1.9%, the lowest growth was observed in large metro outlying counties.