Housing construction activity strengthened in March, with a notable rebound in both single-family and multifamily starts, signaling improved builder activity despite ongoing headwinds from financing costs and affordability constraints. While the monthly gain points to renewed momentum, year-to-date trends remain mixed, particularly in the single-family sector, and permit activity suggests some caution moving forward.
Overall housing starts increased 10.8 percent in March to a seasonally adjusted annual rate of 1.5 million units, according to a report from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau. This pace reflects the number of housing units builders would begin over the next 12 months if March’s activity were sustained.
Within the total, single-family starts increased 9.7 percent to a seasonally adjusted annual rate of 1.03 million units and are up 8.9 percent compared to March 2025. On a year-to-date basis, single-family starts are down 5.5 percent. Given recent volatility, the three-month moving average provides a clearer signal, rising to 957,000 units.
Multifamily starts, which include apartment buildings and condominiums, increased 13.3 percent to an annualized 470,000-unit pace and are up 15.5 percent compared to March 2025. The three-month moving average for multifamily construction has trended higher to 462,000 units, and activity is 15.5 percent higher compared to year-ago levels.
Regionally, on a year-to-date basis, combined single-family and multifamily starts were 36 percent higher in the Northeast, 7.8 percent higher in the Midwest, 3.0 percent higher in the South, but 15.5 percent lower in the West.
The total number of housing units under construction stood at 1.3 million in March, down 9.8 percent from a year earlier. Single-family homes under construction stood at 587,000 units, a 7.3 percent year-over-year decline. Multifamily units under construction declined to 677,000, down from peaks above 1 million units in December 2023 and 11.8 percent lower than a year ago.
Completions of single-family homes have slowed down to an annual rate of about 896,000 units, reflecting ongoing challenges in the residential construction sector. This marks a 14.5 percent decline from a year earlier. Multifamily completions for buildings with five or more units followed the same trend, down 9.1 percent year over year to a 452,000-unit pace. On a year-to-date basis, total completions across both sectors are down 13.5 percent.
Overall permits decreased 10.8 percent to a 1.37 million-unit annualized rate in March. Single-family permits decreased 3.8 percent to an 895,000-unit rate and are down 7.9 percent compared to March 2025. Multifamily permits decreased 21.5 percent to an annualized 477,000-unit pace and are down 6.3 percent compared to March 2025. Looking at regional permit data on a year-to-date basis, permits were 15.4 percent higher in the Northeast, 6.0 percent higher in the West, and 1.1 percent higher in the Midwest. However, permits were 9.1 percent lower in the South.