NAHB: Single-Family Starts Lower on Economic and Tariff Uncertainty

WASHINGTON—Economic uncertainty stemming from tariff issues, elevated mortgage rates and rising building material costs pushed single-family housing starts lower in April, the National Association of Home Builders reported on May 16.

Overall housing starts increased 1.6% in April to a seasonally adjusted annual rate of 1.36 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

The April reading of 1.36 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 2.1% to a 927,000 seasonally adjusted annual rate and are down 12% compared to April 2024. The multifamily sector, which includes apartment buildings and condos, increased 10.7% to an annualized 434,000 pace.

“The decline in single-family housing starts in April mirrors builder sentiment, as elevated interest rates, uncertainty on the tariff front and rising construction costs are exacerbating housing affordability challenges,” said Buddy Hughes, chairman of the National Association of Home Builders and a home builder and developer from Lexington, NC. “In turn, this is making it more difficult for builders to deliver entry-level housing at a price point that is accessible to home buyers.”

“Economic uncertainty, especially around interest rates and inflation, continues to impact both builder financing costs and buyers’ ability to qualify,” said Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis. “However, recent developments on the tariff front concerning the United Kingdom and China along with major tax legislation advancing in Congress should provide a boost to housing demand and positive momentum for the economy.”

On a regional and year-to-date basis, combined single-family and multifamily starts were 19.8% higher in the Northeast, 4.4% higher in the Midwest, 7.4% lower in the South and 3.4% higher in the West.

Overall permits decreased 4.7% to a 1.41-million-unit annualized rate in April. Single-family permits decreased 5.1% to a 922,000-unit rate and are down 6.2% compared to April 2024. Multifamily permits decreased 3.7% to a 490,000 pace.

Looking at regional permit data on a year-to-date basis, permits were 20.3% lower in the Northeast, 5.1% higher in the Midwest, 3.8% lower in the South and 3.5% lower in the West.

In April, the number of single-family homes under construction was at 630,000 homes while the count of apartments under construction was at 788,000 units.