U.S. Housing Starts Surge to Five-Month High

• 11:35 AM EST

by UrbanTurf Staff

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New residential construction in the U.S. showed a noticeable uptick to close out 2025, with housing starts surging.

On Wednesday, the Census Bureau reported that there were approximately 1.4 million housing starts in December, a 6.2% increase from November. This marked the highest pace of groundbreaking activity in five months, beating expectations and signaling that builders are ramping up production even amid market headwinds.

The gains were seen across both single-family homes and multifamily projects, with single-family starts rising to a 981,000 unit annual rate—a monthly jump of roughly 4.1%. Meanwhile, building permits rose 4.3% to 1.448 million, the strongest permit figure since March, although single-family permits saw a modest slip from the prior month.

Lower borrowing costs buoyed builder activity, and despite an inventory overhang of existing homes and affordability challenges in some markets, many developers are choosing to break ground on projects rather than sit on cash. This shift helped blunt some of the drag seen in earlier 2025, when starts and sentiment were both softer.

Still, it’s important to temper the headline with broader context: while monthly figures have rebounded, starts remain slightly below year-ago levels, and persistent affordability constraints—from high land/material costs to mortgage rate volatility—continue to shape builder strategy and pace.

This article originally published at https://dc.urbanturf.com/articles/blog/us_housing_starts_surge_to_five-month_high/24332.