Single-Family Home Construction Drops in January Amid Winter Storms

Construction activity on single-family homes dropped in January amid severe winter storms, with little hope for a quick rebound as permits fell as well.

Single-family housing starts were at a seasonally adjusted annual rate of 935,000 in January, down 2.8% from December, the U.S. Census Bureau and Department of Housing and Urban Development reported on Thursday. The January figure was down 6.5% from a year earlier.

Overall housing starts ticked up 7.2% on the month, powered by a surge in multifamily construction, which is more volatile from month to month.

The January data, released on a delayed basis due to funding lapses, comes as Congress debates legislation intended to spur the construction of new homes, with the Senate expected to vote on a key bill this week.

Known as the 21st Century Road to Housing Act, the Senate bill has drawn criticism for a provision that would force build-for-rent community owners to sell their properties within seven years.

The National Association of Home Builders, which supported the House version of the bill, has raised concerns about the provision, saying it would stifle new construction of single-family rental homes.

“NAHB believes the current version of the Senate’s housing bill would greatly curtail investment in the construction of single-family rental housing," NAHB chief advocacy officer Ken Wingert said in a statement.

Homebuilders say that high materials and labor costs continue to be a drag on new construction, in addition to weak demand from homebuyers struggling with affordability.

“The single-family market has slowed as builders continue to deal with elevated construction costs while affordability conditions are a cause of concern for many potential home buyers,” says NAHB Chairman Bill Owens.

Owens says that severe weather also likely depressed January's single-family construction activity in the Northeast, where single-family starts were down 33% from December 2025 and down more than 6% compared to a year earlier.

Permits decline in a negative sign for future construction

Meanwhile, permits issued for single-family homes in January were at an annualized rate of 873,000, down 0.9% from December and a sharp 11.6% drop from a year earlier.

Overall permits decreased 5.4% to a 1.38 million unit annualized rate in January, with multifamily permits dropping 12% to an annualized 503,000 pace.

“Permit data indicates ongoing weakness for single-family construction given the affordability crisis,” says NAHB Chief Economist Robert Dietz.

Dietz says that January's multifamily starts figure "surged to what appears to be an unsustainable high" level, and may be revised lower in future releases.

"Furthermore, prior NAHB analysis of the geography of permit data has shown gains for apartment construction occurring in lower density areas, such as exurbs, secondary cities, and small towns,” he says.

On a regional basis compared to the previous month, combined single-family and multifamily starts were 47.4% higher in the Northeast, 10.8% lower in the Midwest, 11.4% higher in the South, and 7.5% lower in the West.