Overview
- The joint Census and HUD report released Thursday showed total housing starts fell 2.8% from March to a seasonally adjusted annual rate near 1.47 million units.
- Single‑family starts plunged 9.0% to about 930,000 annualized units, signaling a pullback by builders on for‑sale homes.
- Starts and permits for buildings with five or more units jumped sharply, with multifamily starts around 529,000 and five‑plus unit permits near 514,000, pointing to more rental supply ahead.
- Analysts and trade groups say higher 10‑year Treasury yields have lifted mortgage rates and that rising materials, labor and tariff costs plus elevated new‑home inventory are squeezing single‑family margins and prompting the shift to multifamily projects.
- Monthly data are volatile and regional readings diverge, so the near‑term outlook is uncertain but the permit rebound for large apartment projects suggests multifamily construction will remain a key driver of new housing supply.