Prior month housing starts 1.246MPrior month building permits 1.411M
Housing Starts (December SAAR)
1,404,000 total starts vs estimate of 1.309M
+6.2% m/m (vs. 1,322,000 in November). Last month -4.6%
-7.3% y/y (vs. 1,514,000 in Dec 2024)
Single-family: 981,000 (+4.1% m/m)
5+ units: 402,000
2025 total starts: 1,358,700 (-0.6% vs. 2024)
Building Permits (December SAAR)
1,448,000 total permits vs 1.400M estimate
+4.3% m/m (vs. 1,388,000 in November) vs -0.3% last month
-2.2% y/y (vs. 1,480,000 in Dec 2024)
Single-family: 881,000 (-1.7% m/m)
5+ units: 515,000
2025 total permits: 1,425,200 (-3.6% vs. 2024)
Housing Completions (December SAAR)
1,525,000 total completions
+2.3% m/m
-0.1% y/y
Single-family: 1,023,000 (-0.1% m/m)
5+ units: 483,000
2025 total completions: 1,497,800 (-7.9% vs. 2024)
With the December numbers completing the year, the YoY for 2025 showed that both the Housing starts and the building permits i declined where persistent chatter is the shortage of housing and affordability is too high.
Regionally, Total Housing Starts – YoY (December)
Northeast: +2.7%
Midwest: -13.2%
South: -16.1%
West: +19.7%
Takeaway: Strength was concentrated in the West, modest gains in the Northeast, while the Midwest and South saw notable declines.
Single-Family Starts – YoY (December)
Northeast: +12.7%
Midwest: -19.0%
South: -8.6%
West: -9.4%
Takeaway: The Northeast led single-family growth, while the Midwest saw the sharpest contraction. The South and West also declined on a single-family basis despite the West’s overall strength driven by multifamily activity.
Regionally, Total Building Permits – YoY (December)
Northeast: -5.5%
Midwest: +1.7%
South: -13.2%
West: -14.5%
Takeaway: Permitting activity weakened in most regions, with the South and West seeing the largest declines, while the Midwest was essentially flat year-over-year.
Single-Family Permits – YoY (December)
Northeast: 0.0%
Midwest: +6.0%
South: -12.9%
West: -10.0%
Takeaway: The Midwest showed relative strength in single-family permits, the Northeast was steady, while the South and West continued to soften, reflecting ongoing regional divergence in housing demand.
Housing starts measure when actual construction begins (foundation work started), while building permits reflect government approvals to build — making permits a leading indicator and starts a confirmation of activity. The data are released monthly by the U.S. Census Bureau and reported as a Seasonally Adjusted Annual Rate (SAAR) to smooth seasonal swings and express the pace as an annualized figure.
Markets follow the report because housing is a major driver of economic activity. Stronger permits suggest future construction momentum and builder confidence, while solid housing starts indicate real-time economic activity, including jobs and demand for materials. The single-family vs. multifamily breakdown can provide additional insight into affordability trends, financing conditions, and broader economic expectations.
This article was written by Greg Michalowski at investinglive.com.