U.S. Housing Construction Shows Mixed Trends as Single-Family Activity Weakens
In the second quarter of 2026, single-family construction remained weak across most U.S. geographic markets, as elevated building material costs, high interest rates and continued economic uncertainty constrained residential construction activity. In contrast, multifamily construction strengthened across most regions, supported by resilient demand for rental housing.
According to the latest findings from the NAHB Home Building Geography Index (HBGI), the pace of decline in single-family construction moderated compared with the previous quarter. While single-family construction remained in negative territory across most geographies, growth rates improved broadly during the quarter, indicating a gradual easing in the contraction.
The largest decline was recorded in large metropolitan urban core counties, where single-family construction fell 13.9% year-on-year, marking the fifth consecutive quarterly decline. However, the contraction was less pronounced than the 15.8% decline recorded in the previous quarter. Across non-rural areas, including counties located within small and large metropolitan areas, single-family construction declined 7.3%.
Small metropolitan outlying counties were a notable exception, with single-family construction increasing 0.9% in the second quarter following four consecutive quarters of decline. Although the modest increase does not yet indicate a sustained recovery, it represents an improvement from the 1.4% decline in the previous quarter and the 1.3% decline recorded a year earlier. Meanwhile, rural areas experienced a relatively moderate 0.8% decline in single-family construction.
Overall, the second-quarter data indicate that U.S. single-family construction remained under pressure, but the pace of contraction showed signs of moderating, while stronger multifamily activity continued to provide some support to the broader residential construction sector.
Source: NAHB Home Building Geography Index (HBGI
