Photo via Calculated Risk
According to data from the Census Bureau, privately-owned housing starts declined in October to a seasonally adjusted annual rate of 1.246 million units, representing a 4.6 percent decrease from the revised September figure of 1.306 million. The October performance also marked a 7.8 percent decline compared to the same month in 2024, when starts reached 1.352 million units, signaling moderating construction momentum as the year progresses.
Single-family housing starts showed more resilience, rising to an annual rate of 874,000 units in October—up 5.4 percent from September's revised level of 829,000. However, this gain was offset by weakness in multifamily construction. Permits for buildings containing five or more units stood at 347,000, underscoring the divergence between single-family and multifamily segments of the residential market.
The divergence between single-family and multifamily construction reflects broader market conditions shaped by economic uncertainty and shifting consumer preferences. As the housing market navigates these challenges, the slowdown in overall starts may signal builders' cautious approach to future demand and rising construction costs.
