New York Construction Report staff writer
Housing construction activity rebounded in March, with gains in both single-family and multifamily starts pointing to improved builder momentum despite persistent challenges tied to financing costs and affordability.
Total housing starts rose 10.8 per cent in March to a seasonally adjusted annual rate of 1.5 million units, according to a joint report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The figure represents the pace of construction builders would maintain over a 12-month period if March’s activity level continued.
Single-family construction led the increase, climbing 9.7 per cent to an annualized rate of 1.03 million units. Activity in the segment was up 8.9 per cent compared to March 2025, although year-to-date starts remain down 5.5 per cent. The three-month moving average, often used to smooth volatility, edged up to 957,000 units.
Multifamily starts, which include apartments and condominiums, rose 13.3 per cent to a 470,000-unit annual pace. That marks a 15.5 per cent increase from a year earlier. The three-month moving average also strengthened to 462,000 units, reflecting sustained improvement in the sector.
Regionally, year-to-date housing starts showed uneven growth. Combined single-family and multifamily starts were up 36 per cent in the Northeast, 7.8 per cent in the Midwest and 3.0 per cent in the South, but declined 15.5 per cent in the West.
At the same time, the number of homes under construction continued to trend downward. Total units under construction stood at 1.3 million in March, a 9.8 per cent decline from a year earlier. Single-family homes under construction fell 7.3 per cent to 587,000 units, while multifamily units dropped 11.8 per cent year-over-year to 677,000 units, well below their peak of more than one million units in late 2023.
Completion rates also weakened across both segments. Single-family completions fell 14.5 per cent from a year earlier to an annual rate of approximately 896,000 units. Multifamily completions for buildings with five or more units declined 9.1 per cent year-over-year to a 452,000-unit pace. On a year-to-date basis, total completions across both sectors were down 13.5 per cent.
Permit activity, a key indicator of future construction, declined sharply in March. Overall permits dropped 10.8 per cent to an annualized rate of 1.37 million units. Single-family permits decreased 3.8 per cent to 895,000 units and were down 7.9 per cent compared to a year earlier. Multifamily permits fell 21.5 per cent to a 477,000-unit pace, a 6.3 per cent decline year-over-year.
Regionally, year-to-date permit activity increased 15.4 per cent in the Northeast, 6.0 per cent in the West and 1.1 per cent in the Midwest, but fell 9.1 per cent in the South, suggesting a more cautious outlook for future building activity in some of the country’s largest housing markets.
Housing starts rise in March as multifamily and single-family construction rebounds, but permits point to softer outlook.
