Housing starts declined month over month in April but still topped consensus expectations in a sign that builders are cautious but remain active. 

Total new construction, which includes single-family and multifamily residences, slipped 2.8% from an annual rate of 1,507,000 homes in March to 1,465,000 in April, the United States Census Bureau and the U.S. Department of Housing and Urban Development reported. Year over year, the rate rose 4.6% from 1,400,000 units. 

The pace of new single-family construction fell 9% month over month and 2.4% year over year to 930,000 homes. Multifamily construction surged 14.3% month over month and 23.3% to 529,000 units. 

“Housing starts pulled back in April following March’s rebound, but the overall report still outpaced consensus expectations and does not suggest a sharp deterioration in construction activity,” First American Deputy Chief Economist Odeta Kushi said. “The strength in permits came from the more volatile multifamily sector, while single-family permits — an important signal of future for-sale construction activity — slipped back to their lowest level since the summer of 2025.” 

Housing permits rose 5.8% from a rate of 1,363,000 in March to 1,442,000 in April. Year over year, permits were down 0.2% from 1,445,000 in April 2025. Single-family permits came in at an annual rate of 872,000, which represented a monthly decline of 2.6% and an annual decline of 5.5%. At 514,000, the rate of multifamily permits jumped 22.7% month over month and 11.5% year over year. 

“The broader takeaway from the April report is that residential construction remains active enough to avoid signaling outright weakness, but cautious enough to reflect ongoing affordability pressures and weak builder confidence,” Kushi said. “Builders are still building, but they are doing so carefully, selectively and without much conviction.”