"The HBGI data highlight how affordability and space needs are driving home construction toward lower-density markets, suggesting a key shift in builder focus away from dense urban cores."
"Large metro core counties saw the steepest single-family decline while smaller and micropolitan areas with lower land and construction costs gained momentum, indicating a shift in market dynamics."
"Single-family permit activity weakened in the fourth quarter of 2025, with micro counties posting a 1.6% gain, marking the seventh straight quarter of growth in these markets."
The Home Building Geography Index indicates a decline in single-family home construction across major geographies in late 2025, with micro counties being the exception, showing a 1.6% increase. Large metro core counties experienced a significant 12.8% drop in single-family permits. The data reflects a shift in construction trends driven by affordability and demand for space, leading builders to focus on lower-density markets. Multifamily construction, however, rose across all areas, indicating a contrasting trend in housing development.
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