New single-family starts have trended higher since 2012, reaching a post-pandemic peak of 1,133,145 units in 2021. During 2022 and 2023, elevated housing prices and persistently high mortgage rates have dampened housing market activity. According to NAHB analysis of the 2023 Survey of Construction (SOC), new single-family starts decreased in 2023 for the second consecutive year. Nationally, 946,536 new single-family units started construction in 2023, 7% fewer than the number of units started in 2022. This marked the lowest annual count since the COVID-19 pandemic.
Among all nine Census divisions, the South Atlantic, West South Central, and Mountain Divisions led the way with the most new single-family units started in 2023. These three divisions represent 20 states and Washington, D.C., approximately 41% of the United States, but account for more than two-thirds of the total new single-family housing starts.
In addition, there were 93,831 new single-family units started in the Pacific Division (10% of total starts) and 75,690 in the East North Central Division (8%) in 2023. The other four divisions, including East South Central, West North Central, Middle Atlantic, and New England, accounted for the remaining 17% of the total new single-family housing starts.
In 2023, six out of the nine divisions had negative annual growth rates. The New England Division was the only division that had a positive annual growth rate, while the Pacific and West South Central Divisions remained virtually unchanged in 2023. The Mountain Division reported the largest drop among the nine divisions with a 19% decrease, followed by the Middle Atlantic Division with a 17% decrease and the East North Central Division with a 12% decrease.
Compared to the previous year, four out of the nine divisions had a deceleration in 2023: Mountain, Middle Atlantic, East North Central, and East South Central.
Discover more from Eye On Housing
Subscribe to get the latest posts to your email.