Home Building Increasingly Shifting to Rural and Small Counties
The market share of single-family and multifamily homes built in rural markets increased over the past year, and the growth seems to be accelerating. According to NAHB’s Home Building Geography Index (HBGI), 10.5% of all single-family homes built in Q4 2021 were built in rural areas, up from 10% in Q4 2020. In addition, 6% of multifamily units were built in rural areas compared to just 4.1% a year ago.
In the HBGI, “rural areas” are defined as “micro counties” and “non-metro/micro counties” designations by the U.S. Census Bureau, the source of the data. In Q4 2021, those counties accounted for about 14% of the U.S. population but the share of home building was 16.5%.
Evolving market conditions were primarily responsible for the market share gains. While the most acute effects of pandemic are waning, a large number of home buyers continue to look outside large metro areas for their homes.
An historic shortage of buildable lots is also prompting builders and developers to look further afield for places to build their communities. The growth over the last year could accelerate, as multifamily permits were up over 90% year-over-year in rural counties in Q4 2021.
NAHB economist Litic Murali provides more analysis in this Eye on Housing blog post.
Latest from NAHBNow
Advocacy
Dec 05, 2025
NAHB's Monthly Update Features Talking Points on Advocacy Victories in 2025The update provides the latest messaging framework to help members articulate all the legislative, regulatory and business wins NAHB secured this year.
Design
Dec 04, 2025
Top Color Trends for 2026Neutrals and rich, luxurious hues dominate this year's color trends, along with sophisticated greens. Whether you’re helping a client with a bathroom remodel or searching for fresh ideas for a model home, you can use these color trends for inspiration for your next project. Check out the 2026 Colors of the Year.
Latest Economic News
Economics
Dec 05, 2025
Mortgage Rates Continue to Trend Lower in NovemberThe average mortgage rate in November continued to trend lower to its lowest level in over a year. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.24% in November, 2 basis points (bps) lower than in October. Meanwhile, the 15-year rate increased 3 bps to 5.51%.
Economics
Dec 04, 2025
Number of Bathrooms in New Single-Family Homes in 2024Single-family homes started in 2024 typically had two full bathrooms, according to the U.S. Census Bureau’s Annual Survey of Construction. Homes with three full bathrooms continued to have the second largest share of starts at around 23%. Meanwhile, both homes with four full bathrooms or more and homes with one bathroom or less made up under ten percent of homes started.
Economics
Dec 03, 2025
House Price Appreciation by State and Metro Area: Third Quarter 2025House prices continued to rise in the third quarter of 2025, though the pace of growth slowed as elevated mortgage rates, affordability challenges, and persistent economic uncertainty weighed on consumer demand. After several years of rapid growth, Hawaii and 38 metro areas saw house price declines this quarter, highlighting significant regional variations in market conditions.