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
Jan 12, 2026
State Supreme Court to Review NAHB-Supported Case on Subcontractor LiabilityThe South Carolina Supreme Court granted a petition for certiorari review in a case with serious consequences for general contractor liability for subcontractor negligence.
Jan 12, 2026
NAHB’s Monthly Update Features 2026 Advocacy PrioritiesThe update provides the latest messaging framework to help members articulate the Federation's housing priorities.
Latest Economic News
Jan 12, 2026
Household Real Estate Asset Values Fall in the Third QuarterThe market value of household real estate assets fell to $48.0 trillion in the third quarter of 2025, according to the most recent release of U.S. Federal Reserve Z.1 Financial Accounts. The third quarter value is 0.7% lower than the second quarter but is 1.5% higher than a year ago.
Jan 12, 2026
Growth for Custom Home BuildingNAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates year-over year growth for custom home builders amid broader single-family home building weakness.
Jan 09, 2026
Townhouse Construction Share Gains ContinueAccording to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the third quarter of 2025, single-family attached starts totaled 46,000. Over the last four quarters, townhouse construction starts totaled a strong 179,000 homes, which is 1% higher than the prior four-quarter period (177,000). Townhouses made almost 20% all of single-family housing starts for the third quarter of the year.