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Single-family construction fell in the last two quarters of 2025 across all U.S. regions, with the exception of low-density, low-populated micro counties, according to the NAHB’s Home Buildings Geography Index (HBGI). Multifamily construction rose across all geographic regions in the same time period.
“The HBGI data highlight how affordability and space needs are driving home construction toward lower-density markets,” says NAHB chairman Bill Owens, a homebuilder and remodeler from Worthington, Ohio. “Large metro core counties saw the steepest single-family decline while smaller and micropolitan areas with lower land and construction costs gained momentum.”
The HBGI measures building conditions across the country quarterly and uses county-level information about single- and multifamily permits to gauge housing construction growth in various urban and rural areas.
The index found declines for different-sized single-family markets in Q4 2025, with the exception of micro counties, which grew 1.6%, marking the seventh straight quarter of construction growth in these counties.
“While single-family homebuilding continues to face challenges across most of the nation, multifamily construction strengthened across every region in the fourth quarter following two years of uneven performance,” says NAHB chief economist Robert Dietz. “Growth returning to large metro core counties coupled with sustained construction in smaller markets signals a more balanced and geographically diverse multifamily sector heading into 2026 than in years prior.”
Large metro core counties lost 1% of market share between the fourth quarter of 2024 and the fourth quarter of 2025, as the geographic composition of single-family construction continued to evolve over the year. Small metro core counties remained the largest market, increasing 0.3% in market share from last year. The largest market share gain during 2025 was in micro counties, which were up 0.6 percentage points from 2024. This was driven by the growth in construction in these counties.
Multifamily construction posted gains across all geographies in the fourth quarter, marking the first time all geographic sectors have shown quarterly growth since 2023. The highest levels of growth in the fourth quarter were in micro counties, up 14.0% on a year-over-year four-quarter moving average. The lowest growth in the fourth quarter was found in the outlying counties of large metro areas, posting a gain of 1.9%.
Market share of multifamily construction shifted in the fourth quarter of 2025. The largest increase in market share was in small metro core counties, with a gain of 0.6 percentage points over the year, compared to the fourth quarter of 2024. Large metro outlying counties lost 0.5 percentage points during 2025, posting as the largest decline in market share. All other geographies saw little change from last year.
