A new report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau reveals that housing starts rose by 15.8% in December, reaching a seasonally adjusted annual rate of 1.50 million units — the highest level since February 2024.
Driven by strong demand, single-family construction saw growth in December 2024, despite ongoing challenges such as high mortgage rates, elevated financing costs for builders, and a limited supply of buildable lots.
The December 2024 figure of 1.50 million represents the number of housing units builders would begin if the current pace continued for 12 months. Within this total, single-family starts rose by 3.3%, reaching a 1.05 million annual rate, while multifamily starts — including apartments and condos — jumped 61.5% to a 449,000-unit pace.
For 2024, total housing starts reached 1.36 million, a 3.9% decline from 2023’s 1.42 million units. Single-family starts grew by 6.5% to 1.01 million, while multifamily starts fell by 25% compared to the previous year.
“Single-family home building increased by 6.5% in 2024 as builders responded to a persistent housing affordability crisis caused by elevated mortgage rates and higher construction costs,” said Carl Harris, chairman of the National Association of Home Builders (NAHB). “Looking ahead, the industry expects modest growth in single-family construction in 2025, supported by a housing shortage and favorable economic conditions.”
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Author: David Barley
