INSUBCONTINENT EXCLUSIVE:
Census Bureau reports that housing starts dropped 9.8% in January 2025, hitting 1.36 million units.This decline follows a revised 1.51
million units in December 2024, surprising economists who expected an 8.6% dip
Compared to January 2024, starts fell 0.7%, signaling a rocky start for builders.Freezing weather slowed construction nationwide, while
mortgage rates climbed to 6.9% from 6.6% a year ago
million units, and multifamily starts plunged 11% to 336,000 units
Meanwhile, building permits edged up 0.1% to 1.483 million units, beating forecasts of a 2.2% drop.Single-family permits rose 1.6% to
992,000 units, but multifamily permits fell 5% to 491,000 units
Housing Starts Drop 9.8% as Costs and Weather Hit Hard
Single-family completions dropped 7.4% to 948,000 units, while multifamily soared to 570,000 units
In 2024, completions reached 1.63 million units, up 12.4% from 2023.The South saw a 5.2% drop in 2024 starts, and the West fell 7.7%
The Northeast gained 9.1%, while the Midwest held steady
Rising rates squeeze affordability, and tariffs could hike material prices further
Still, 2024 saw single-family starts rise 6.5% to 1.01 million units, though multifamily dropped 25%.Housing drives 4% of U.S
GDP, so this slump ripples through jobs and manufacturing
Permits hint at future activity, yet uncertainty lingers.The figures tell a story of resilience tested by reality
Demand endures, but builders navigate a maze of costs, weather, and policy shifts
