Despite a strong December end, single-family house construction fell in 2025 as persistent affordability challenges weighed on the market.
The overall number of house starts in 2025 was 1.36 million, a 0.6% decrease from 1.37 million in 2024. The number of single-family home starts in 2025 was 943,000, a 6.9% decrease from the previous year. Multifamily starts increased 17.4% in 2025 compared to 2024.
According to a study from the United States Department of Housing and Urban Development and the Census Bureau, overall housing starts jumped 6.2% in December to a seasonally adjusted annual pace of 1.40 million units. This rate represents the number of dwelling units built over the next 12 months if December’s activity is continued.
Single-family starts increased by 4.1% to 981,000 units on a seasonally adjusted yearly basis. This rate is the highest since February 2025. The multifamily sector, which includes apartments and condos, rose by 11.3% to 423,000 units.
In terms of regional housing starts for 2025, single-family and multifamily starts were 8.7% higher in the Northeast, 7.2% higher in the Midwest, 4.0% lower in the South, and 0.8% lower in the West.
Overall, permits increased by 4.3% in December to 1.45 million on an annualized basis, but were down 2.2% from December 2024. Single-family permits fell 1.7% to 881,000 units, down 10.9% from the previous year. The number of multifamily permits climbed by 15.2% to 567,000 units.
Total permits in 2025 were 1.43 million, a 3.6% decrease from 1.48 million in 2024. Single-family permits reached 909,600 in 2025, a 7.4% decrease over the previous year.
Looking at 2025 regional permit data, total permits were 7.7% lower in the Northeast, 3.0% higher in the Midwest, 5.2% lower in the South, and 1.9% lower in the West.
In December, there were 1.3 million housing units under construction, down 10.5% from the previous year. Single-family house construction declined to 587,000 units, an 8.4% year-over-year decline and the lowest level since November 2020. Multifamily homes under construction fell to 690,000, a 12.2% decrease from the previous year and significantly below the record of more than 1 million units in December 2023.
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