US housing starts climbed 10.8% month-on-month in March 2026 to a seasonally adjusted annual rate of 1.502 million units, the highest level since December 2024 and well above market expectations of 1.40 million. Builders expanded construction activity despite persistent affordability pressures. Single-family starts rose 9.7% to 1.032 million, a 13‑month high, while multi-family starts increased 9.6% to 446,000.
By region, construction strengthened across the board: the South advanced 9.1% to 794,000, the West 7.2% to 311,000, the Midwest 12.2% to 221,000, and the Northeast 24.8% to 176,000.
In contrast, building permits—a leading indicator of future construction—declined to an annualized rate of 1.372 million, the lowest level since August. The data indicate that the housing market may be stabilizing, with builders increasingly relying on incentives to attract buyers. However, the war in Iran has added a new layer of economic uncertainty, driving up material costs and contributing to higher mortgage rates.
