Multifamily Production Brings Overall Housing Starts Down
Housing starts fell 9.8% in May 2025, driven by a sharp 29.7% drop in multifamily construction, while single-family starts stayed mostly flat with a slight 0.4% increase. Builders continue to face challenges from high interest rates, affordability issues and economic uncertainty, leading many to reduce prices to attract buyers. Regionally, housing activity varied, with strong gains in the Northeast and Midwest but declines in the South and West, and overall building permits also saw a 2% monthly decrease.
