Single-Family Construction Activity Starts 2026 on a Low Note

In January 2026, both single-family starts and permits fell on a year-over-year basis
March 12, 2026

Residential construction activity started 2026 on a weak note. According to an analysis of U.S. Census data by real estate marketing platform Zillow, building permits issued in January fell to 1.37 million, 5.4% below the December 2025 rate and 5.8% below the January 2025 rate.

For the single-family market, permits fell even further. Single-family permits dropped to a rate of 873,000 in January, which is 11.6% lower than the previous year.

Single-family home building activity remains weak. With home values expected to remain somewhat flat, the combination of higher costs and increased competition from resale inventory is keeping many builders on the sidelines.

- Orphe Divounguy, Zillow senior economist

Overall housing starts improved, but the single-family market still reported declines

On a positive note, housing starts increased to 1.48 million in January, which is up by 7.2% from the revised December estimate and 9.5% higher than in January 2025. Still, the single-family market saw starts fall to 935,000 in January, which is approximately 2.8% lower than the December estimate and 6.5% lower than in January 2025.

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