April Housing Data: Single-Family Home Construction Slows, While Multifamily Projects Gain Momentum

In April 2025, new data revealed a mixed performance in the U.S. housing market. While overall housing starts saw a slight increase, single-family home construction declined, and multifamily developments showed notable growth.

Seasonally adjusted annual housing starts reached approximately 1.36 million units in April. However, single-family housing starts dropped by around 2%, falling to roughly 927,000 units — the lowest level in several months.

In contrast, multifamily housing — including apartment buildings and condos — rose sharply. Starts in this category increased by more than 10% year-over-year, surpassing 430,000 units. This growth is largely driven by strong rental demand and increased interest in urban living.

Building permits, which signal future construction activity, also declined. New residential permits fell by over 4% in April, suggesting potential slowing in the months ahead.

Economic uncertainty, persistently high interest rates, and elevated construction costs are weighing heavily on single-family housing. Meanwhile, the multifamily sector continues to attract investment thanks to its affordability and growing demand in major cities.

Experts suggest that for the housing market to stabilize, improvements in mortgage rates and material costs will be essential.