Multifamily Construction Gains in April While Single-Family Declines
Overall housing starts rose 1.6% in April to a seasonally adjusted annual rate of 1.36 million units, according to data released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Despite the uptick in total starts, the breakdown reveals a contrasting trend between housing types.
Single-family housing starts declined 2.1% month-over-month in April, registering an annualized rate of 927,000 units. Meanwhile, multifamily housing starts surged 10.7%, reaching an annual rate of 434,000 units.
In terms of building permits—a key indicator of future construction—overall authorizations dropped 4.7% to a 1.41-million-unit annual rate. Single-family permits fell 5.1% to 922,000, down 6.2% from the same period the previous year. Multifamily permits also declined by 3.7%, coming in at a 490,000-unit pace.
“The decline in single-family housing starts in April mirrors builder sentiment, as elevated interest rates, uncertainty on the tariff front, and rising construction costs are exacerbating housing affordability challenges,” said Buddy Hughes, chairman of the National Association of Home Builders and a home builder and developer from Lexington, North Carolina. “In turn, this is making it more difficult for builders to deliver entry-level housing at a price point that is accessible to home buyers.”
As affordability and supply chain challenges persist, the housing industry continues to navigate a complex environment, with trends diverging sharply between single-family and multifamily sectors.
