Housing starts softened in April after March’s sharp increase, though year-over-year comparisons remain slightly positive as the housing market navigates shifting seasonal patterns.
In the New Residential Construction report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, new housing starts were down 2.8% from March to a seasonally adjusted annual rate of 1.47 million in April. Despite the month-over-month decline, April starts were up a robust 4.6% compared to April 2025’s rate of 1.4 million, signaling sustained builder activity relative to the prior year.
Single-family housing starts in April reached 930,000, down 9% from March’s revised rate of 1.022 million but down only 2.4% compared to April 2025. In contrast, multifamily starts showed relative strength at 529,000 units, up 14.3% from March’s 463,000 and up 23.3% year-over-year.
Realtor.com® Senior Economist Joel Berner said that this month’s new construction data release shows a shift in the priorities of builders.
“They are shifting away from single-family homes, which they have struggled to sell at the prices they want in recent years, and shifting toward larger multifamily projects with higher margins,” he shared in a press release. “This is a sensible business decision for builders, but it raises the question of whether homeownership will become more attainable for future generations if the delivery of housing units today is skewing toward rentals.”
Building permits, meanwhile, rebounded smartly in April, rising 5.8% to 1.44 million from March’s revised 1.36 million. However, they remained virtually flat compared to April 2025’s rate of 1.45 million. Single-family permits declined 2.6% to 872,000, while permits for five-or-more unit buildings surged 22.7% to 514,000, reflecting continued strength in multifamily development despite single-family hesitation.
Housing completions accelerated in April, rising 4.8% to 1.45 million from March’s revised 1.38 million. Completions were, however, 2% below April 2025’s rate of 1.48 million.
Single-family completions held relatively steady at 903,000, down just 1% from March, while multifamily completions reached 529,000. The increase in total completions suggests builders are making progress finishing units, which may help ease inventory constraints in some markets.
Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis, noted that the decline in housing starts highlights growing pressure from tighter financial conditions and rising construction costs.
“Recent increases in the 10-year Treasury yield have driven mortgage rates higher, further reducing affordability and weakening demand for new homes,” she said. “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.”
Regional mixed signals
Regionally, April performance was mixed, with the South experiencing a notable pullback. Southern starts fell 11% month-over-month to 723,000, though they remained flat year-over-year. The West posted modest gains with 356,000 starts, up 5% from March. The Midwest showed resilience with 206,000 starts, up 2.5% from the prior month. The Northeast’s starts reached approximately 180,000, reflecting some continued modest activity.
NAHB Chair Bill Owens highlighted the Midwest as “more stable” compared to other regions, even as he warned that builders overall “remain cautious.”
On the permits side, regions showed more optimism. Permit authorizations increased across most of the country, particularly in multifamily categories. The South authorized approximately 756,000 permits, the West 307,000, the Midwest 238,000 and the Northeast 141,000. The surge in permit activity, especially for apartment buildings, suggests developers expect continued demand.
