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
Jul 18, 2025
Single-Family Starts Weaken in June as Affordability Challenges PersistDue to a solid increase in multifamily production, overall housing starts increased 4.6% in June to a seasonally adjusted annual rate of 1.32 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Jul 17, 2025
Stay on Top of Wood Framing Safety PoliciesWood framing is an integral part of the home building process, and one job that many general contractors take on themselves. But even with familiarity of the task, specific safety precautions should be followed during framing.
Latest Economic News
Jul 18, 2025
Single-Family Starts Weaken in June as Affordability Challenges PersistSingle-family housing starts declined in June to the lowest rate since July 2024 as elevated interest rates, rising inventories and ongoing supply-side issues continue to act as headwinds for the housing sector.
Jul 17, 2025
Builder Confidence Edges Up in JulyBuilder confidence for future sales expectations received a slight boost in July with the extension of the 2017 tax cuts, but elevated interest rates and economic and policy uncertainty continue to act as headwinds for the housing sector.
Jul 16, 2025
Producer Prices for Metals and Equipment Show Large IncreasesResidential building material prices rose in June, driven primarily by higher construction machinery and equipment part prices. Metal commodities also experienced significant increases, following recently implemented tariffs on steel and aluminum. Meanwhile, price growth for services used in construction continues to outpace both domestic and imported goods.