U.S. Housing Starts and Permits (April 2026)

Homebuilding activity retreated in April

• Housing starts fell 2.8% month-on-month (m/m) in April to 1.47 million (annualized) units, stronger than consensus expectations for 1.41 million units.
• April's decline was largely driven by a 9.0% contraction in single-family starts, while multi-family starts rose 10.3%.
• Residential permits increased 5.8% m/m to 1.44 million annualized units in April. This gain was driven by a 21.8% increase in the multi-family segment, while permitting activity declined in the single-family segment (-2.6%).
• Among the four Census regions, only the South recorded a decline (-11.0%). The Northeast (+16.1%), West (+5.0%), and Midwest (+2.5%) all recorded gains during the month.
  
   

Key Implications

• Homebuilding activity fell to start the second quarter as softer single-family starts weighed on the aggregate. In contrast, the more volatile multi-family segment notched a three-year high in starts, sustaining the gradual recovery in the segment over the past year. With single-family permitting activity declining for a second consecutive month and homebuilder sentiment measured by the NAHB remaining subdued in May, starts are likely to soften further moving forward.
• The recent spike in mortgage rates is expected to add to this softer momentum. With the 30-year fixed rate now sitting near a one-year high and financial markets now pricing in a roughly 60% chance for at least one rate hike by year-end, affordability pressures are likely to persist through 2026.
• Over the medium term, fiscal support related to the 21st Century ROAD to Housing Act recently passed by the House may provide a boost to homebuilding through targeted regulatory relief and funding incentives. However, the impact is likely to be gradual and uneven, in part reflecting implementation lags and reliance on local policy responses.

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