March housing starts drop sharply in U.S., hit by higher borrowing costs

Posted on April 23, 2025   |  

U.S. housing starts dropped 11% in March, reaching 1.32 million units—the lowest since October 2023.

Single-family housing starts fell 14% to 940,000 units, marking the biggest monthly drop since July 2023.

Multi-family starts held steady at 371,000 units with no month-over-month change.

Building permits rose 2% overall to 1.48 million; multi-family permits jumped 10%, while single-family permits fell 2%.

Regionally, housing starts plunged 31% in the Northeast and 18% in the South; the Midwest grew 20%, and the West declined 4%.

March completions decreased 2% to 1.55 million, as single-family completions ticked up 1% and multi-family completions dropped 8%.

Despite the monthly decline, total starts were up 2% year-over-year, but single-family starts fell nearly 10% amid high mortgage rates above 7%.