U.S. Housing Starts Jump 11.2% in February 2025, Surpassing Expectations

In February 2025, housing starts in the United States surged by 11.2% compared to the previous month, reaching an annualized rate of 1.5 million units. This significant rebound follows a decline in January and signals a strong recovery in the residential construction sector.

Single-family home starts rose by 11.4%, while multi-family housing projects increased by 10.7%. The growth is largely attributed to improved weather conditions and accelerated construction activities during the month.

Despite the monthly gains, housing starts remain 2.9% lower than the same period last year, reflecting ongoing challenges such as rising construction costs, labor shortages, and regulatory hurdles.

Experts note that limited housing inventory and robust buyer demand continue to support new construction. However, building permits declined by 1.2% in February to 1.456 million units, suggesting potential moderation in construction activity in the coming months.

Overall, the strong increase in housing starts in February points to a short-term boost for the housing market, though long-term sustainability depends on addressing cost pressures and permitting delays.