Single-family housing starts in January were at a rate of 935,000, according to data from the US Census Bureau and the Department of Housing and Urban Development. This is 2.8% below the revised December figure of 962,000.
Privately-owned housing starts in January were at a seasonally adjusted annual rate of 1.48 million, which is 7.2% above the revised December estimate of 1.38 million and 9.5% above the January 2025 rate of 1.35 million.
Single-family authorizations in January were at a rate of 873,000, a 0.9% decline from the revised December figure of 881,000. Privately-owned housing units authorized by building permits in January were at a seasonally adjusted annual rate of 1.37 million, a 5.4% drop from the revised December rate of 1.45 million and 5.8% below the January 2025 rate of 1.46 million.
Single-family housing completions in January were at a rate of 970,000, which is 1% below the revised December rate of 980,000. Privately-owned housing completions in January were at a seasonally adjusted annual rate of 1.52 million, which is 4.8% above the revised December estimate of 1.45 million but 7.5% below the January 2025 rate of 1.65 million.
“The single-family market has slowed as builders continue to deal with elevated construction costs while affordability conditions are a cause of concern for many potential home buyers,” said Bill Owens, chairman of the National Association of Home Builders and a home builder and developer from Worthington, Ohio. “Weather effects also likely depressed single-family construction in the Northeast, where single-family starts were down 33% from December 2025 and down more than 6% compared to January 2025 readings.”
First American Deputy Chief Economist Odeta Kushi observed, “Total permits, the leading indicator of future construction, fell to the lowest level since August, coming in below expectations. Because permits typically precede starts, this pullback suggests that ground-breaking activity may moderate in the months ahead. Single-family starts have trailed completions since July 2025. When completions outpace starts, the pipeline of homes under construction shrinks. Expect units under construction to keep trending lower as builders work through their backlog, rather than expand it. Single-family completions also moved lower, meaning fewer newly finished homes are reaching the market. The month-over-month decline was most pronounced in the Midwest and Northeast, where severe winter weather likely disrupted construction activity, while completions in the West increased.”
