Single-Family Starts Fall Amid Economic Uncertainty and Affordability Pressures

Single-family housing starts declined in April as builders faced continued economic uncertainty and affordability challenges, including higher construction costs, ongoing labor shortages and elevated financing expenses.

Overall housing starts decreased 2.8% in April to a seasonally adjusted annual rate of 1.47 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

The April reading of 1.47 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 9% to a 930,000 seasonally adjusted annual rate and are down 2.4% compared to April 2025. The multifamily sector, which includes apartment buildings and condos, increased 10.3% to an annualized 535,000 pace and are up 19.7% compared to April 2025.

"Housing starts pulled back in April as elevated mortgage rates and ongoing affordability challenges continued to weigh on the market," said Bill Owens, chairman of the National Association of Home Builders (NAHB) and a home builder and remodeler from Worthington, Ohio. "The drop indicates builders remain cautious as softer buyer demand and higher financing costs limit new construction activity. However, the Midwest looks to be more stable compared to the other regions."

"The decline in housing starts highlights growing pressure from tighter financial conditions and rising construction costs," said Danushka Nanayakkara-Skillington, NAHB's assistant vice president for forecasting and analysis. "Recent increases in the 10-year Treasury yield have driven mortgage rates higher, further reducing affordability and weakening demand for new homes. As a result, home building is likely to remain under pressure in the coming months, especially as higher diesel and gas prices continue to raise construction costs."

On a regional and year-to-date basis, combined single-family and multifamily starts were 16.6% higher in the Northeast, 2.9% lower in the Midwest, 1.8% higher in the South and 0.4% lower in the West.

Overall permits increased 5.8% to a 1.44 million unit annualized rate in April. Single-family permits decreased 2.6% to an 872,000-unit rate and are down 5.5% compared to April 2025. Multifamily permits increased 21.8% to an annualized 570,000 pace and are up 9.2% compared to April 2025.

Looking at regional permit data on a year-to-date basis, permits were 14.2% higher in the Northeast, 7.3% higher in the Midwest, 6.7% lower in the South and 0.7% higher in the West.

The number of single-family homes under construction is at 588,000 units while the number of apartments under construction is at 687,000 units.