The number of new home starts in the United States increased in April, and construction of multi-family residential buildings has revived.

The number of new housing starts in the United States increased in April, as a rise in multi-family housing construction offset a decrease in single-family housing construction. According to government data released on Friday, new housing starts in April increased by 1.6% to a seasonally adjusted annual rate of 1.36 million units, in line with the median expectation of economists surveyed. Single-family housing starts decreased by 2.1% to a seasonally adjusted annual rate of 927,000 units, the lowest since July of last year. Multi-family housing starts increased by 10.7%. Single-family building permits fell by 5.1% to near a two-year low, indicating that new home construction will likely slow down in the coming months. The data on new housing starts and building permits suggest that the real estate industry is still struggling to gain momentum due to high inventory levels and mortgage rates close to 7%. Residential builders' confidence fell to its lowest level since the end of 2023 in May, with businesses expecting costs to rise further with tariffs as home prices approach record highs.