# Housing Starts Show Strong Growth in December

The housing market continues to show resilience and growth, with single-family construction seeing an uptick in December despite challenges faced by the industry. Factors such as high mortgage rates, increased financing costs for builders, and a lack of buildable lots have not deterred the demand for new housing units.

According to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, overall housing starts increased by 15.8% in December, reaching a seasonally adjusted annual rate of 1.50 million units. This marks the highest rate since February 2024. Single-family starts also saw an increase of 3.3% to a rate of 1.05 million units, while the multifamily sector experienced a significant growth of 61.5% to a pace of 449,000 units.

In 2024, total housing starts were at 1.36 million, showing a slight decline from the previous year. However, single-family starts in 2024 totaled 1.01 million, a 6.5% increase from 2023. The National Association of Home Builders (NAHB) forecasts a modest gain in single-family home building for 2025 due to the persistent housing shortage and favorable economic conditions.

Multifamily starts ended the year with a 25% decrease from 2023, but the construction is expected to stabilize in 2025 as more projects become financially feasible. Single-family completions in 2024 saw a 2.2% increase, while multifamily completions were up by 35%. This data indicates a growing demand for medium-density housing, such as townhouses and duplexes, which could be met with zoning reforms in various markets.

Regionally, the Northeast saw a 9.1% increase in combined single-family and multifamily starts in 2024, while the Midwest remained relatively stable. The South and West, however, experienced declines of 5.2% and 7.7%, respectively. Permits for new construction decreased by 0.7% in December, with single-family permits increasing by 1.6% and multifamily permits decreasing by 5.0%.

Looking ahead to 2025, the positive sign of a 6.6% increase in single-family permits in 2024 bodes well for the coming year. Despite challenges and fluctuations in the market, the housing industry remains robust and continues to meet the demand for new homes across the country.

## FAQ

### 1. What contributed to the growth in housing starts in December?
The growth in housing starts in December was driven by solid demand for new housing units, despite challenges like high mortgage rates and financing costs.

### 2. Which sector saw the largest increase in construction in December?
The multifamily sector experienced a significant growth of 61.5% in December, reaching a pace of 449,000 units.

### 3. How did single-family and multifamily construction fare in 2024?
Single-family starts increased by 6.5% in 2024, while multifamily starts ended the year with a 25% decrease from 2023.

## Conclusion

The housing market showed strong growth in December, with single-family construction leading the way. Despite challenges facing the industry, such as high mortgage rates and financing costs, the demand for new homes remains steady. With forecasts indicating a positive outlook for 2025, the housing sector is poised for continued growth and stability in the coming year.