Builders are facing a challenging market. From high costs to regulatory hurdles, construction in the first half of the year has been slow.

This is especially true in the single-family sector. According to a recent report from the National Association of Home Builders, single-family permitting activity declined throughout the first half of 2026, reaching just 465,301 nationwide. Meanwhile, multifamily permitting activity saw a slight increase compared with the same period last year.

Multifamily continues to outperform single-family permitting

In the first six months of 2026, single-family permitting fell by 4.2% compared with the same period in 2025. Multifamily permitting, on the other hand, grew by 4.5% in the first half of 2026, compared with the same period last year. Multifamily permits reached 255,751 nationwide in the first half of 2026.

Single-family permitting activity is still growing in some states

Regionally, single-family permitting fell across the U.S., with the Northeast recording the largest decline at 10.2%

However,a handful of states still saw permitting activity grow in the first half of the year. At the state level, 13 states and Washington, D.C., recorded year-over-year increases in single-family permits through June. Washington, D.C., recorded the largest increase in permitting activity at 65.2%, while Idaho was at the bottom, recording an increase of just 1%. California reported no change, and the remaining 35 states recorded declines. At a decline of 26%, Nevada recorded the most significant decrease in single-family permitting activity.