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 January reached a seasonally adjusted annual rate of 1.48 million, a 0.1% increase from December but 1.7% below January 2024 levels. Single-family permits held steady at 996,000.
- Housing starts: Housing starts fell 9.8% month-over-month to 1.37 million, down 0.7% from January 2024. Single-family starts declined 8.4% to 993,000 units, reflecting ongoing challenges in the housing market.
- Housing completions: Completions rose 7.6% from December and 9.8% from January 2024, reaching 1.65 million units. Single-family completions increased 7.1% to 982,000 units.
Industry perspective
Despite the decline in housing starts, home builders remain cautiously optimistic about 2025.
“Home builders and remodelers are dealing with both positive and negative risks in the months ahead,” said Rob Dietz, chief economist at the National Association of Home Builders. “With shelter inflation still rising at a 4.4% annual clip and a housing shortage of roughly 1.5 million units, the best way to bend the rising housing cost curve is for the Trump administration and Congress to enact policies that will allow builders to construct more attainable, affordable housing.”
Looking ahead
Builders are preparing for potential regulatory changes that could impact the housing market. While multifamily starts saw some movement, the number of apartments under construction fell to 821,000, the lowest level since March 2022. Interest rate cuts expected through 2025 could help stabilize multifamily construction and support single-family home building.
