U.S. new-home construction fell sharply in March, with total housing starts dropping 11% from February to a seasonally adjusted annual rate of 1.32 million. This marks the lowest monthly figure since October 2023, driven by a 14% drop in single-family starts to 940 thousand units, the steepest monthly fall since July 2023, according to the U.S. Census Bureau and Department of Housing and Urban Development.
Multi-family housing starts remained flat at 371 thousand. While overall starts declined, building permits—a leading indicator of upcoming construction—rose 2% month-over-month to 1.48 million. Multi-family permits climbed 10% to 445 thousand, while single-family permits dropped 2% to 978 thousand, falling below the 1 million mark.
Regionally, the Northeast recorded the largest contraction in starts, down 31%, followed by the South with an 18% decrease. The West saw a smaller decline of 4%, while the Midwest rose 20%, bolstered by multi-family activity.
Completions fell 2% in March to 1.55 million. Single-family completions increased slightly by 1% to 1.03 million, but multi-family completions declined 8% to 503 thousand. Homes under construction stood at 1.39 million, down slightly from 1.41 million in February.
Despite the monthly decline, total housing starts were up 2% compared to March 2024. However, single-family starts fell nearly 10% year-over-year, underscoring persistent affordability challenges. Mortgage rates remained above 7% during the period, further straining demand and delaying buyer decisions.
