Single-family construction posted declines in nearly every geographic region in the second quarter of 2025, according to the National Association of Home Builders Home Building Geography Index.
The largest percentage drop, at 3.8%, occurred in large metro, suburban counties.
The index registered declines for all single-family markets in the second quarter, except micro counties, which posted a 1.8% gain, marking the fifth straight quarter of construction growth in these counties.
“Single-family production continues to lag behind last year’s levels due to housing affordability challenges, including persistently high mortgage rates, the skilled labor shortage and excessive regulatory costs,” NAHB Chairman Buddy Hughes said in a statement. “Policymakers at all levels of government need to improve the business climate so that builders can build more homes by eliminating unnecessary regulations, promoting careers in the skilled trades and overturning inefficient zoning rules.”
Read the full report here.