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recent report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau shows that housing starts rose by 15.8% in December, reaching a seasonally adjusted annual rate of 1.50 million units - the highest level since February 2024.

    Despite ongoing challenges such as high mortgage rates and limited buildable lots, single-family construction saw growth driven by strong demand. Single-family starts rose by 3.3% to a 1.05 million annual rate, while multifamily starts jumped 61.5% to a 449,000-unit pace.

    For the year, total housing starts reached 1.36 million, a 3.9% decline from 2023's 1.42 million units. Single-family starts grew by 6.5%, while multifamily starts fell by 25%. The National Association of Home Builders (NAHB) expects modest growth in single-family construction in 2025.

    The multifamily sector experienced a 25% decline in starts for 2024, but is expected to stabilize later in 2025 as more projects become financially viable. Regionally, combined housing starts increased by 9.1% in the Northeast, while declining in other regions.

    Housing permits dipped by 0.7% in December to a seasonally adjusted annual rate of 1.48 million units, marking a 3.1% decline compared to December 2023. Single-family permits rose by 1.6%, but multifamily permits fell by 5.0%. For the year, total permits were 1.47 million, a 2.6% decrease from 2023.

    The number of single-family homes under construction declined by 5.3% year-over-year to 641,000, while apartments under construction fell by 21% to 790,000, continuing a downward trend.