Overall housing starts fell 2.8% in April to a seasonally adjusted annual rate of 1.47 million units, with single-family starts dropping 9.0% to a 930,000 seasonally adjusted annual rate, according to a National Association of Home Builders’ analysis of a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Year-over-year, single-family home starts fell 2.4% in April, while multifamily starts including apartment buildings and condos rose 19.7%, compared with April 2025.
“Housing starts pulled back in April as elevated mortgage rates and ongoing affordability challenges continued to weigh on the market,” Bill Owens, chairman of the National Association of Home Builders, said. “The drop indicates builders remain cautious as softer buyer demand and higher financing costs limit new construction activity. However, the Midwest looks to be more stable compared to the other regions.”
“The decline in housing starts highlights growing pressure from tighter financial conditions and rising construction costs,” Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis, said. “Recent increases in the 10-year Treasury yield have driven mortgage rates higher, further reducing affordability and weakening demand for new homes. As a result, home building is likely to remain under pressure in the coming months, especially as higher diesel and gas prices continue to raise construction costs.”
Regionally and year-over-year, overall housing starts were up 16.6% in the Northeast, down 2.9% in the Midwest, up 1.8% in the South and down 0.4% in the West.
Read the full report here.
