Housing Starts declined by nearly 10% from December to January, with decreases seen in both single-family and multifamily construction. However, the December housing data reflected one of the strongest levels of activity in 2024, providing important context for the January decline. Meanwhile, Building Permits, a leading indicator, rose slightly to start the year.
What’s the bottom line?
NAHB Chair Carl Harris noted that “high construction costs, elevated mortgage rates, and challenging housing affordability conditions are causing builders to approach the market with caution.” This also suggests home prices will remain supported, as insufficient supply is coming on the market to meet demand, presenting ongoing opportunities for wealth-building through homeownership.