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Construction and Real Estate Are the Highest Grossing Industries Among Sole Proprietors in Rural America [1]

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Date: 2025-08-06

Editor’s Note: This post is from our data newsletter, the Rural Index, headed by Sarah Melotte, the Daily Yonder’s data reporter. Subscribe to get a weekly map or graph straight to your inbox.



Construction and real estate saw the highest revenues among all nonemployer businesses in rural America in 2023, grossing more than $69 billion, according to my analysis of the latest Economic Census data.

Approximately 80% of small businesses are nonemployers, or businesses without employees, sometimes referred to as sole proprietors, according to the 2023 small business survey. Between 1997 and 2023, the number of nonemployer businesses increased almost every year, from just under 16 million establishments in 1997 to approximately 30 million in 2023. These businesses include establishments in a variety of industries, like carpentry, cosmetology, construction, and food services, among many others.

Most nonemployer business revenues are quite modest. A 2019 report from the Federal Reserve Bank of New York found that about three quarters of nonemployer businesses earn less than $100,000 in annual revenue, while the majority of establishments are not profitable.

But construction is an increasingly lucrative industry. Nonemployer construction businesses accounted for 21%, or $40.4 billion, of rural America’s total $188 billion in revenue among all nonemployer businesses that year. Individuals who do operate nonemployer businesses in construction often operate as independent contractors for other firms.

This map illustrates the sum of gross product in nonemployer construction and real estate establishments in nonmetropolitan, or rural, counties. “Grossing” refers to revenue, sales, or shipments before costs are deducted, for businesses that earn at least $1,000 annually.

We’ll return to real estate in a moment, but for now, let’s focus on construction. Many of the rural construction industry’s hotspots are in counties adjacent to some of the nation’s fastest-growing metro areas, like Dallas–Fort Worth, which gained approximately 178,000 new residents between 2023 and 2024.

In nearby Henderson County, Texas, nonemployer construction firms grossed $166 million in 2023. Neighboring Van Zandt County saw nearly $120.5 million in nonemployer construction revenue, meanwhile.

Communities outside of North Carolina’s research triangle, which includes the growing cities of Raleigh, Durham, and Chapel Hill, saw one of the highest grossing nonemployer construction industries in 2023. In Harnett County, North Carolina, a nonmetropolitan county halfway between Raleigh and Fayetteville, nonemployer construction establishments grossed $133 million in 2023.

That makes intuitive sense: as nearby population centers grow, the demand for housing, infrastructure, and commercial development tends to spill into surrounding rural areas. The higher the population, the more demand for construction.

But not all of the highest grossing construction firms are outside sprawling metros; some are located in areas known for recreation and outdoor amenities, where wealthy retirees and second home owners spur development.

In Grafton County, New Hampshire, a rural community among New England’s White Mountains, nonemployer construction firms brought in over $114 million in 2023.

In these outdoor recreation communities, there is some overlap between the counties with the highest grossing construction industry and the highest grossing real estate industry.

Gallatin County, Montana, a rural community that borders Yellowstone National Park, brought in the most nonemployer real estate revenue compared to the rest of rural America, grossing over $312 million in 2023. Gallatin County was also the second highest grossing rural county in the nonemployer construction industry, with over $277.9 million in revenue that year.

Nearby Flathead County, Montana, also had some of the highest grossing construction and real estate industries in rural America, with over $250 million in nonemployer construction revenue, and $222.3 million in nonemployer real estate revenue. Between 2023 and 2024, Gallatin and Flathead counties were the fastest growing areas in Montana.

Hawaii’s big island also saw some of the nation’s highest nonmetropolitan revenue in the nonemployer real estate industry in 2023, grossing over $194 million. Kauai County, Hawaii’s westernmost county, grossed $166.5 million in nonemployer real estate that year.

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