Building permits in the United States declined by 4.7% in April 2025 to a seasonally adjusted annualized rate of 1.412 million, marking the lowest level in nearly a year and falling short of market forecasts of 1.45 million, according to preliminary estimates. This was the steepest monthly drop since March 2024, as persistently high mortgage rates and new tariffs on imported construction materials weighed heavily on demand.
US building permits drop sharply in April
Permits for single-family homes—the largest segment of the housing market—fell 5.1% to 922,000, hitting their lowest point in almost two years. Meanwhile, permits for buildings with five or more units slipped 4.4% to an annualized rate of 431,000, signaling ongoing weakness in the multifamily sector.
Regionally, the picture was mixed. The Midwest and South saw significant declines in permitting activity, dropping by 8.1% to 192,000 and 9.6% to 754,000, respectively. Conversely, the Northeast recorded a robust 14.3% increase to 136,000, and the West rose by 3.4% to 330,000, suggesting some localized resilience despite broader national headwinds.
US housing starts rebound modestly
Meanwhile, US housing starts edged higher by 1.6% month-over-month in April to a seasonally adjusted annualized rate of 1.361 million, recovering from an upwardly revised 10.1% slump in March. However, the figure still came in slightly below expectations of 1.37 million, as elevated borrowing costs and high inventories continued to exert pressure on the housing sector.
A closer look reveals diverging trends within the market. Starts for multi-unit buildings with five or more units rebounded strongly, rising 11.1% to 420,000, suggesting sustained demand in the rental market. In contrast, single-family starts—which represent the bulk of US homebuilding—declined 2.1% to 927,000, reflecting ongoing affordability concerns and cautious builder sentiment.
Regionally, housing starts climbed in the South (up 10.9% to 760,000) and the Northeast (up 12.9% to 158,000), while the Midwest (-10.8% to 198,000) and the West (-16.1% to 245,000) posted sharp declines, underscoring the uneven nature of the housing market recovery across the country.
