Hardware Retailing The Industry's Source for Insights and Information
Total housing starts for 2025 were down 0.6% from 2024, totaling 1.36 million, according to the recently released data from the U.S. Census Bureau and an analysis from the National Association of Home Builders. Single-family starts in 2025 were reported at 943,000, down 6.9% from the previous year, and multifamily starts were up 17.4% from 2024.
“Single-family home building dipped in 2025 because of ongoing affordability challenges, fueled by high housing price-to-income ratios and elevated financing and construction costs,” says Buddy Hughes, a home builder and developer from Lexington, N.C. “NAHB expects single-family starts will move slightly higher this year, as mortgage rates are expected to moderate.”
Regionally, combined single-family and multifamily housing starts for 2025 were 8.7% higher in the Northeast, 7.2% higher in the Midwest, 4% lower in the South and 0.8% lower in the West.
“Multifamily construction was down in high-density markets but up in the low-rise sector,” says Jing Fu, NAHB senior director of forecasting and analysis. “Multifamily starts are anticipated to fall 5% in 2026 to an annual pace of 392,000 units and decline an additional 6% in 2027 to a 367,000 rate, leveling off near pre-pandemic levels.”
Total permits for 2025 were 1.43 million, a 3.6% decrease from the 1.48 million total from 2024. Single-family permits in 2025 were down 7.4% from 2024 at 909,600.
In the Northeast, total permits were down 7.7%, up 3.0% in the Midwest, down 5.2% in the South and down 1.9% in the West.
