Economic uncertainty stemming from tariff issues, elevated mortgage rates, and rising building material costs pushed single-family housing starts lower in April.
That’s according to the National Association of Home Builders, which reported on Friday that the number of single-family homes under construction is at 630,000 homes.
In comparison, the number of apartments under construction is 788,000 units. And 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.
Buddy Hughes is the chairman of NAHB and a home builder and developer from Lexington, N.C.
“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,” Hughes said. “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.”
Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis, said uncertainty around interest rates and inflation continues to impact both builder financing costs and buyers’ ability to qualify.
“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,” Nanayakkara-Skillington said.
NAHB’s data show that 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, according to NAHB.
