Housing starts in April surpassed market expectations, indicating that builders, while cautious, remain actively engaged in new construction. Despite a slight month-over-month dip in total new homes, the annual rate saw a modest increase, signaling resilience in the housing sector.
Key Takeaways
- Total new construction declined slightly from March but exceeded forecasts.
- Multifamily construction experienced significant growth, while single-family starts saw a decrease.
- Permits for new housing also rose, driven by the multifamily sector, though single-family permits hit a low.
- The overall trend suggests builders are proceeding carefully due to affordability pressures and fluctuating confidence.
April Housing Market Performance
In April, the total number of new housing starts, encompassing both single-family and multifamily residences, was reported at an annual rate of 1,465,000 units. This represents a 2.8% decrease from the 1,507,000 units recorded in March. However, on a year-over-year basis, the rate climbed by 4.6% from 1,400,000 units in April 2025.
Sector-Specific Trends
The single-family construction segment experienced a notable pullback, with starts falling 9% month-over-month and 2.4% year-over-year to 930,000 homes. In contrast, multifamily construction saw a substantial surge, increasing by 14.3% from the previous month and 23.3% year-over-year, reaching 529,000 units.
Permit Activity
Housing permits, a leading indicator of future construction, rose by 5.8% in April to an annual rate of 1,442,000, up from 1,363,000 in March. Year-over-year, permit numbers were slightly down by 0.2% from 1,445,000 in April 2025. Single-family permits declined by 2.6% monthly and 5.5% annually, reaching an annual rate of 872,000. Multifamily permits, however, jumped significantly, up 22.7% month-over-month and 11.5% year-over-year to 514,000 units.
Builder Sentiment and Outlook
Experts note that while housing starts saw a dip, the overall figures outpaced expectations, suggesting that construction activity has not sharply deteriorated. The strength in permits was largely attributed to the volatile multifamily sector. Single-family permits, a key indicator for future for-sale housing, retreated to their lowest point since the summer of 2025. The broader sentiment indicates that residential construction remains active but is being conducted with caution, reflecting ongoing affordability challenges and subdued builder confidence. Builders are proceeding selectively and without strong conviction.