Overview

• Single-family housing starts dropped 4.6% to a seasonally adjusted annual rate of 883,000 units, marking the weakest pace since July 2024
• Permits for new single-family construction fell 3.7% to 866,000 units, the lowest level in two years
• Multifamily starts for projects with five or more units surged 30.6% to 414,000 units, reflecting uneven demand across the sector
• Mortgage rates near 7% remain elevated with the Federal Reserve holding policy steady in response to inflation pressures from import tariffs
• Slow homebuilding and rising inventory levels, now at 2007 highs, have pushed residential investment into contraction and dented GDP growth