New-home construction is off to a sluggish start in 2025, with fewer permits issued nationwide—potentially signaling headwinds for the housing market, according to the National Association of Home Builders.
While the national picture shows a slowdown, regional trends vary significantly, with some areas seeing unexpected growth.
Single-family permits across the U.S. totaled 73,115 in January, off 3.7% from the same month in 2024 when 75,906 were issued. Permits can serve as a bellwether for
On a regional basis in January, the South and West, which hold some of the hottest housing markets of the decade, saw permits pull back by 6.6% and 2.2%, respectively. The Midwest, though, experienced a significant 11% bump up, while the Northeast saw permitting inch up 0.6%.
Even with the national downturn, over half the country saw an uptick in permits. Washington, D.C., led the way with a staggering 525% increase, though many states posted more modest gains. The top ten states accounted for 65.4% of all permits, led by Texas with 12,179 in January. The Lone Star State's total dropped 4.2% from a year ago.
The next two states with the highest permit volumes, Florida and North Carolina, saw even larger annual dropoffs of 13.9% and 11.4%. Both states, though, are also dealing with recovery and rebuilding efforts from the severe impact of
The early-year decline in permitting marks a reversal from 2024 full-year numbers. For all of 2024, issued permits grew by 8% nationwide, with numbers rising across all four regions.
While a single month's downturn might not indicate a longer-term trend, the data comes at the same time builders' outlook for the year have likewise gone south, according to NAHB's most recent
While the Trump administration put a pause on import taxes affecting Canadian lumber shipments, a 25% tariff on all steel and aluminum products from abroad went into effect earlier this week.
An
On the multifamily side, permit volume also came in lower to start 2025, dropping 1.2% to 38,402 from 38,870 a year earlier, NAHB said. Numbers fell the most in the West, with a 23.4% pullback from January 2024, while the Northeast and Midwest saw drops of 14.3% and 1.5%. The South, however, posted permit growth of 12.9%, with Florida leading all states in volume.
As builders navigate economic and policy uncertainties, the coming months will reveal whether this early-year slowdown is a blip—or the start of a broader housing market shift.
