The U.S. housing market saw mixed trends in January, with housing starts declining while building permits and completions showed stability or growth, according to the latest report from the U.S. Census Bureau.
Key takeaways:
- Building permits: Privately owned housing units authorized by building permits in March reached a seasonally adjusted annual rate of 1.482 million, a 1.6% increase from February but 0.2% below March 2024 levels. Single-family permits in March were at a rate of 978,000; this is 2.0 percent below the revised February figure of 998,000.
- Housing starts: Housing starts fell 11.4% month-over-month to a seasonally adjusted annual rate of 1.32 million in March, but remained 1.9% above the March 2024 level. Single-family starts declined 14.2% to 940,000 units, reflecting continued softness in new home construction.
- Multifamily starts: Starts for buildings with five units or more came in at 371,000, showing stability in the multifamily sector despite broader declines.
- Housing completions: Completions dipped 2.1% month-over-month to a seasonally adjusted annual rate of 1.55 million in March, but remained 3.9% above the March 2024 level. Single-family completions edged up 0.9% to 1.03 million units, signaling steady progress in the segment.
- Multifamily completions: Completions for buildings with five units or more reached 503,000, reflecting ongoing strength in the multifamily construction pipeline.
Industry perspective
“The drop in March housing starts is a clear signal that affordability pressures are intensifying,” said Buddy Hughes, chairman of the National Association of Home Builders and a home builder and developer from Lexington, NC. “Elevated mortgage rates and rising construction costs are making it increasingly difficult to deliver homes at price points accessible to entry-level buyers. We’re seeing demand soften as more potential homeowners are priced out of the market.”
