Despite a strong finish in December, single-family home building dipped in 2025 as persistent affordability challenges continued to weigh on the market.
Total housing starts for 2025 were 1.36 million, down 0.6% from the 1.37 million total in 2024. Single-family starts in 2025 totaled 943,000, down 6.9% from the previous year. Multifamily starts ended the year up 17.4% compared with 2024.
Overall housing starts increased 6.2% in December to a seasonally adjusted annual rate of 1.40 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This pace reflects the number of housing units builders would begin over the next 12 months if December’s activity were sustained.
Within this overall number, single-family starts rose 4.1% to a seasonally adjusted annual rate of 981,000 units. This is the highest rate since February 2025. The multifamily sector, which includes apartment buildings and condos, increased 11.3% to a 423,000-unit pace.
Looking at regional housing starts for 2025, combined 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 rose 4.3% to a 1.45 million annualized rate in December but were down 2.2% compared with December 2024. Single-family permits declined 1.7% to an 881,000-unit rate and were 10.9% lower than a year earlier. Multifamily permits increased 15.2% to a 567,000-unit pace.
Total permits for 2025 were 1.43 million, a 3.6% decline from the 1.48 million total in 2024. Single-family permits in 2025 totaled 909,600, down 7.4% from the previous year.
Looking at regional permit data for 2025, 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.
The total number of housing units under construction stood at 1.3 million in December, down 10.5% from a year earlier. Single-family homes under construction fell to 587,000 units, an 8.4% year-over-year decline and the lowest level since November 2020. Multifamily units under construction declined to 690,000, down 12.2% from a year earlier and well below the peak of more than 1 million units reached in December 2023.
