Residential construction activity began 2026 on a mixed note, with single-family permitting weakening significantly while multifamily activity remained relatively stable. Higher borrowing costs and affordability constraints continue to weigh on single-family construction, while multifamily permitting shows signs of resilience despite regional variation.
Over the first month of the year, the number of single-family permits issued nationwide reached 62,034. On a year-over-year basis, this represents a 15.2 percent decline compared with the January 2025 total of 73,115. Multifamily permitting activity was essentially flat, with 38,215 permits issued nationwide, marking a 0.5 percent decline from the same period last year.
Regionally, year-to-date single-family permitting declined in all four regions in January. The Midwest declined by 9.1 percent, the Northeast fell 10.6 percent, the South declined 14.7 percent, and the West dropped 20.1 percent. Multifamily permits increased in three of the four regions, led by gains in the Northeast (up 39.4 percent), followed by the West (up 35.5 percent), and the Midwest (up 10.9 percent). The South saw a decline of 24.2 percent, driven largely by a 42.0 percent decrease in Atlanta-Sandy Springs-Roswell, GA metropolitan areas and a 39.0 percent drop in the Houston-Pasadena-The Woodlands, TX metropolitan area.
At the state level, seven states recorded year-over-year increases in single-family permits in January, with gains ranging from 25.5 percent in Montana to 0.4 percent in Washington. Connecticut reported no change. The remaining 42 states and the District of Columbia reported declines, led by the District of Columbia, which posted the steepest drop at 52.0 percent.
The ten states issuing the highest number of single-family permits accounted for 63.8 percent of all single-family permits issued nationwide. Texas led the country, with 9,580 permits issued at the start of 2026, although this represented a 21.3 percent decline compared with January 2025. Florida, the second-highest state, saw permits fall by 14.9 percent, while North Carolina, ranked third, experienced a decline of 9.8 percent.
Between January 2026 and January 2025, 26 states recorded increases in multifamily building permits, while 24 states and the District of Columbia experienced declines. Delaware posted the largest percentage increase, with multifamily permits surging 1,293.8 percent, rising from 16 to 223 units. In contrast, Wyoming recorded the steepest decline, with permits falling 100.0 percent, from 13 to zero units.
The ten states issuing the highest number of multifamily permits accounted for 63.1 percent of all multifamily permits issued nationwide. Over the first month of 2026, California, which issued the most multifamily permits, recorded a substantial increase of 119.2 percent. Texas, the second-highest state, posted a decline of 24.4 percent, while New York, ranking third, saw multifamily permits rise by 66.7 percent.
At the local level, the following are the ten metropolitan areas with the highest number of single-family permits issued.
Below are the ten metropolitan areas with the highest levels of multifamily permitting activity.
This article was originally published by a eyeonhousing.org . Read the Original article here. .
