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Single-Family Home Construction Time Declines in 2025 – Eye On Housing

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Building a new single-family home took less time in 2025 compared to the previous three years. On average, it now takes 8.8 months from start to finish. That time includes 1.4 months for authorization to start construction and another 7.4 months to finish construction.

Data from the Census Bureau’s Survey of Construction shows that single-family construction timelines have shortened as pandemic-era supply chain challenges have eased. However, the time period is still around 1.6 months longer than the average completion time in 2015. The longer construction timeline may reflect several headwinds facing builders, including a more stringent regulatory environment and an ongoing skilled labor shortage.

Among all single-family houses completed in 2025, homes built for sale required the shortest amount of time, 7.4 months from obtaining building permits to completion. Meanwhile, homes built by owners (portion of custom home building) required the longest time, 14.3 months. Homes built by hired contractors took about 11.7 months (the larger portion of custom home building), and homes built-for-rent required about 12.4 months from authorization to completion.

The chart below illustrates that permit-to-completion time differs across home sizes. The smallest single-family homes, under 1,200 sq. ft., required 12.2 months to finish, relatively longer than every other size homes except those over 5,000 sq. ft. This prolonged period is primarily because half of these smaller homes are constructed specifically for rental purposes, which typically takes longer building time from authorization.

In contrast, homes ranging from 1,200 to 3,999 sq. ft. are built at the average building time, typically around 9 months. As the size increases beyond 4,000 sq. ft., there is a noticeable upward trend in completion times. Homes of 4,000-4,999 sq. ft. take about 10.7 months, while those between 5,000- 5,999 sq. ft. extend to around 12 months. Homes over 6,000 sq. ft. take the longest to build, requiring 16.3 months from permit to finish.

The average time from authorization to completion also varies regionally across divisions. The division with the longest duration was New England (13.5 months), followed by the Middle Atlantic (12.6 months), the Pacific division (10.3 months), the East South Central division (9.1 months), and the Mountain division (9.1 months) in 2025. These five divisions exceeded the nation’s average of 8.8 months. The shortest period, 7.6 months, is registered in the South Atlantic division. The average waiting period from permit to construction start varies from the shortest time of 1 month in the East North Central and the West North Central to the longest of 1.8 months in New England.

The SOC also collects additional information for houses built for sale, including a sale date when buyers sign sale contracts or make a deposit. Looking at single-family homes built for sale and completed in 2025, 12.3% were sold before construction started, 29.3% sold while under construction, 18.5% sold during the month of completion, and 31.5% sold after completion. The share of completed houses remaining unsold was 8.3% at the point of survey. Compared with 2024, a larger share of new single-family homes remained on the market until after construction was completed. The share sold after completion rose from 27.0% to 31.5%, while the share sold while under construction fell from 33.0% to 29.3%, and the share sold before construction began declined from 15.2% to 12.3%. These shifts suggest that, despite shorter construction timelines, builders faced a weaker sales environment in 2025.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Single-Family Construction Contracts Broadly While Multifamily Expands – Eye On Housing

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Home building trends diverged across geographies in the second quarter of 2026. According to the Home Building Geography Index (HBGI), single-family construction declined in nearly all geographic categories, although the contraction eased in most markets from the first quarter. Multifamily construction expanded across six of the seven categories, with activity increasingly concentrated in large metro core and suburban counties.

Single-Family

Single-family construction declined in six of the seven geographic categories in the second quarter. However, the downturn in single-family construction in the second quarter eased as these geographies contracted at a slower pace from the previous quarter.

Large metro core counties recorded the steepest decline, falling 13.9% and marking the fifth consecutive quarter of decline. This was an improvement from the 15.8% decline in the first quarter. Outlying counties in small metro areas were the only market to return to growth, increasing a modest 0.9% following four consecutive quarterly declines.

The geographic composition of single-family construction continued to shift toward smaller and less densely populated markets. Large metro core counties experienced the largest market share decline, falling 1.3 percentage points from a year earlier to reach another new low point at 14.6%. By contrast, small metro outlying counties posted the largest gain, increasing 0.8 percentage point to 10.9%.

Small metro core counties remained the largest single-family market, accounting for 29.4% of construction, followed by large metro suburban counties at 24.0%.

Multifamily

Multifamily construction expanded in all markets except large metro outlying counties. Large metro core counties increased 11.6%, recording three-quarters of consecutive growth. Compared to the previous quarter, the pace of increase has slowed but the market still recorded the strongest growth among all geographies.

Large metro suburban counties also followed a similar pattern, posting a 7.9% increase, although growth has slowed from the prior quarter. In contrast, large metro outlying counties declined 15.9% and were the only market that contracted for the multifamily sector.

Non-metro/micro counties posted the clearest acceleration, with growth rising to 10.3%, although these areas accounted for only 1.2% of multifamily construction.

Multifamily market share continued to shift toward large metropolitan areas. Large metro core counties gained 1.6 percentage points from a year earlier to reach 35.4%, while large metro suburban counties gained 0.5 percentage points to reach 27.3%. Together, these markets accounted for 62.7% of multifamily construction.

The second quarter of 2026 HBGI data along with an interactive HBGI map can be found at https://nahb.org/hbgi.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Single-Family AD&C Lending Falls Back in Q2 – Eye On Housing

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Single-family construction lending fell slightly in the second quarter, according to data released by the Federal Deposit Insurance Corporation. The volume of 1-4 family residential construction and land development loans outstanding was down 0.4% from the first quarter. The total volume of outstanding AD&C loans, which includes both nonresidential and residential construction loans, rose for the first time in nine quarters.

In the second quarter of 2026, the total level of outstanding AD&C loans rose to $453.5 billion, up from $453.3 billion in the previous quarter. The volume of 1-4 family residential construction and land development loans fell to $91.3 billion in the second quarter, down 0.4% from a quarter earlier. Despite the quarterly decline, the volume of 1-4 family residential was up 1.7% from last year. This marked the fourth straight quarter showing a year-over-year increase. The volume of all other real estate development loans rose to $362.1 billion, up 0.1% from the first quarter but down 4.6% from a year ago.

It is worth noting that the FDIC data represents only the stock of loans, not changes in the underlying flows, so it is an imperfect data source. Nonetheless, lending remains much reduced compared with years past. The current amount of existing 1-4 family residential AD&C loans now stands 56% lower than the peak level of residential construction lending at $204 billion during the first quarter of 2008. Alternative sources of financing, including equity partners, have supplemented this capital market in recent years.

Quality Metric of Construction Loans

The volume of loans that were 30+ days past due or in nonaccrual status fell in the second quarter, to $967.8 million. As a share of the total 1-4 family residential construction loan volume, this accounts for 1.1%.

Breaking this out further, the level of loans 30-89 days past due was $425.9 million, while the volume in nonaccrual status was $492.2 million. The nonaccrual loan volume fell from $493.7 million in the first quarter, and the 30-89 past due volume fell from $451.5 million.

Loans are classified as nonaccrual when one or more of the following conditions apply: the loan is 90 days or more past due on principal or interest (unless it is well-secured and in the process of collection); the bank no longer expects full repayment of principal and interest; or the borrower’s financial condition has significantly deteriorated, warranting cash-basis accounting.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Small Decline for Single-Family Home Size – Eye On Housing

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New single-family home size had been falling since 2015 in response to declining affordability conditions. An exception occurred in 2021, when new home size increased as interest rates reached historic lows. However, as mortgage interest rates increased in 2022 and 2023 and affordability worsened, demand shifted back toward smaller homes. This trend appears to be reversing again as the entry-level has been weak.

According to second quarter 2026 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area was 2,185 square feet, effectively unchanged from the prior quarter. Average (mean) square footage for new single-family homes registered at 2,426 square feet, a small increase year-over-year.

On a one-year moving average basis, the average size of a new single-family home increased slightly to 2,421 square feet, while the median size increased to 2,184 square feet. Since 2024 home size has trended higher as the upper end of the housing market has fared better than the entry level.

Home size trends in 2026 are likely to post continued small gains, driven by relative strength at the higher end of the market but will be constrained by housing affordability challenges.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Second Quarter Declines for Single-Family Built-to-Rent – Eye On Housing

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Single-family built-for-rent (SFBFR, or built-to-rent (BTR)) construction fell back in the second quarter of 2026, as a higher cost of financing, increased multifamily supply and policy concerns over Congressional legislation related to institutional capital froze parts of the development market. Fortunately, changes by the House of Representatives addressed a harmful Senate proposal. The housing legislation, as enacted into law, does not include a prohibition against institutional capital financing BTR housing. Stabilization for BTR housing should be reached in the coming months.

According to NAHB’s analysis of data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, there were approximately 15,000 single-family built-for-rent (SFBFR) starts during the second quarter of 2026. This is down measurably from the second quarter of 2025 (18,000).

Over the last four quarters, 63,000 such homes began construction, which is a 16% decrease compared to the 75,000 estimated BTR starts for the prior four quarter period.

The BTR market is a source of inventory amid challenges regarding housing affordability and down payment requirements in the for-sale market, particularly during a period when a growing number of people want more space and a single-family structure. Single-family built-for-rent construction differs in structural characteristics compared to other newly-built single-family homes, particularly with respect to home size.

Given the relatively small size of this market segment, the quarter-to-quarter movements typically are not statistically significant. The current four-quarter moving average of market share (just under 7%) is nonetheless higher than the historical average of 2.7% (1992-2012).

Importantly, as measured for this analysis, the estimates noted above include only homes built and held by the builder for rental purposes. The estimates exclude homes that are sold to another party for rental purposes, which NAHB estimates may represent another three to five percent of single-family starts based on industry surveys.

The Census data note an elevated share of single-family homes built as condos (non-fee simple), with this share averaging about 3% over recent quarters. Some, but certainly not all, of these homes will be used for rental purposes. Additionally, it is theoretically possible that some single-family built-for-rent units are being counted in multifamily starts, as a form of “horizontal multifamily,” given that these units are often built on a single plat of land. However, spot checks by NAHB with permitting offices indicate no evidence of this data issue occurring.a

With the onset of the Great Recession and declines in the homeownership rate, the share of built-for-rent homes increased in the years after the recession. While the market share of SFBFR homes is small, it has clearly expanded. Given affordability challenges in the for-sale market, the SFBFR market will likely retain an elevated market share.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Single-Family Permitting Declines Through June in Contrast to Multifamily – Eye On Housing

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Single-family permitting activity continued to weaken through the first half of 2026, while multifamily permitting remained somewhat stronger compared with the same period last year.

Over the first six months of the year, the number of single-family permits issued nationwide reached 465,301. Compared with the same period in 2025, this represents a 4.2 percent decline from the June 2025 total of 485,935. In contrast, multifamily permitting activity remained stronger, with 255,751 permits issued nationwide, marking a 4.5 percent increase from the same period last year.

Regionally, year-to-date single-family permitting declined in all four regions through June. The Midwest was essentially flat, while the South declined 3.6 percent, the West fell 6.8 percent, and the Northeast posted the largest decline, at 10.2 percent. Multifamily permits increased in three of the four regions, led by the Northeast (43.5 percent), followed by the West (14.0 percent) and the Midwest (1.4 percent). The South was the only region to post a decline, with multifamily permits falling 8.9 percent, driven largely by reduced permitting activity in major metropolitan areas across the region.

At the state level, 13 states and the District of Columbia recorded year-over-year increases in single-family permits through June, with gains ranging from 65.2 percent in the District of Columbia to 1.0 percent in Idaho. California reported no change, while the remaining 35 states posted declines. Nevada recorded the steepest decline, with single-family permits falling 26.0 percent.

The ten states issuing the highest number of single-family permits accounted for 62.8 percent of all single-family permits issued nationwide. Texas led the nation with 75,274 permits issued through June 2026, although this represented a 3.6 percent decline from the same period in 2025. Florida, the second-highest state, recorded a 5.0 percent decline, while North Carolina, ranking third, posted a 9.2 percent decrease.

Through June, 33 states and the District of Columbia recorded increases in multifamily building permits, while 17 states experienced declines. The District of Columbia posted the largest percentage increase, with multifamily permits rising 137.5 percent, from 469 to 1,114 units. In contrast, Nevada recorded the steepest decline, with permits falling 51.2 percent, from 3,866 to 1,888 units.

The ten states issuing the highest number of multifamily permits accounted for 61.0 percent of all multifamily permits issued nationwide. Through the first six months of 2026, California, which issued the largest number of multifamily permits, posted a 26.1 percent increase compared with the same period last year. Texas, the second-highest state, recorded a 23.7 percent decline, while Florida, ranking third, saw multifamily permits decrease by 41.3 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. It is worth noting that the largest multifamily markets continue to show declines. Gains for multifamily permitting are occurring in smaller markets and for smaller builders.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Exterior Material Trends in Single-Family Homes – Eye On Housing

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Vinyl siding was the most used principle exterior wall material for homes started construction in 2025. This material held just over a quarter share of homes, surpassing stucco for the second time since 2018. The declining share for stucco reflected the slowdown for home building in parts of the Sun Belt.

For homes started in 2025, 27.7% had vinyl siding as the principal exterior wall material. Vinyl siding was followed closely by stucco at 24.1%, and by fiber cement siding (such as Hardiplank or Hardiboard) at 22.6%. Each of these materials held about a quarter share of the market, with another sliver held by brick or brick veneer at 16.8%. Far smaller shares of single-family homes started last year had wood or wood products (5.9%) as the principal exterior wall material, while all other materials had a less than 2% share.

As shown in the graph above, while vinyl has historically held a much larger share, at a high of almost 40% in 2001, the share fell rapidly between 2010 to 2015 by over 10 percentage points. However, this share has remained fairly steady since, at around 25%. Meanwhile, stucco rose rapidly from 17% in 2010 until recently peaking at 28% in 2021.  

However, the strongest trend has been the growing popularity in fiber cement siding, growing in share by almost 20 percentage points in the past 25 years. Also notable is the decline of brick siding, from almost a quarter of homes in 2012, to just under 17% in 2025.

As shown in the dashboard above, exterior material preferences varied by both home size and price. Vinyl siding had the largest market share among smaller homes (under 2,000 square feet), while fiber cement was most common in larger homes (3,000 square feet or more). Stucco was widely used across all home sizes but was most prevalent in midsized homes (2,000–2,999 square feet).

A majority of homes started in 2025 were priced between $250,000-$499,000, where vinyl was most prevalent. Meanwhile, stucco was the most common material in home priced above $500,000.  Interestingly, although brick siding was most common in lower-priced homes, it also had a relatively high market share among larger homes. This apparent contradiction highlights the most important factor influencing exterior material choices: geography.

Climate, regional building practices, material availability, and architectural styles create substantial differences in siding preferences across the country. In 2025, brick or brick veneer was the most common exterior siding material in the West South Central division at 54%. As the South tends to build larger and more affordable homes, this helps explain why brick siding is associated with both larger and lower-priced homes. 

In 2025, vinyl siding was the most widely used primary exterior material in five out of nine census divisions. Vinylsidingwas used on 73% of the new homes started in the Middle Atlantic, 72% in New England, 71% in the East North Central, 47% in the West North Central and the East South Central at 39%. Notably, this was the first time since 2020 that vinyl siding surpassed brick siding in the East South Central division.

Stucco was the most used primary exterior wall material in the Pacific and South Atlantic divisions in 2025, at 65% and 33% of the new single-family homes started in those areas. Fiber Cement siding slightly surpassed stucco this year in the Mountain division with a 42% market share for the first time based on data available back to 2000.

The highest market share for wood exterior siding was in the West North Central division at 23% of homes started in 2025. Meanwhile, stone, concrete block, and other siding materials held similary small shares across all divisions.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Multifamily Gains Lift Overall Starts Despite Single-Family Decline – Eye On Housing

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Strong multifamily growth pushed overall housing starts higher in June, while single-family production remained sluggish as elevated mortgage rates, rising construction costs and persistent labor shortages continued to weigh on the market.

Overall housing starts increased 19.0% in June to a seasonally adjusted annual rate of 1.43 million units, according to a report from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau. This pace reflects the number of housing units builders would begin over the next 12 months if June’s activity were sustained.

Within the total, single-family starts decreased 0.2% to an 895,000 seasonally adjusted annual rate and were down 3.2% compared to June 2025. On a year-to-date basis, single-family starts are down 5.3%. Given recent volatility, the three-month moving average provides a clearer signal, falling to 902,000 units.

Multifamily starts, which include apartment buildings and condominiums, rose 76.2% from May to June to an annualized 532,000 pace. The three-month moving average for multifamily construction has trended higher to 445,000 units, and activity is 17.2% higher compared to year-earlier levels.

Regionally, on a year-to-date basis, combined single-family and multifamily starts were 4.5% higher in the Northeast, 1.7% higher in the South, 1.2% higher in the Midwest, and 4.4% lower in the West. Single-family starts were down in all four regions.

The total number of housing units under construction stood at 1.26 million in June, down 6.2% from a year earlier. Single-family homes under construction stood at 582,000 units, a 6.9% year-over-year decline. Multifamily units under construction slowed down to 682,000, down from peaks above 1 million units in December 2023 and 5.7% lower than a year ago.

Completions of single-family homes have improved to an annual rate of about 964,000 units. This marks a 5.5% increase from a year earlier. However, multifamily completions for buildings with five or more units were down 5.1% year over year to a 413,000-unit pace. On a year-to-date basis, total completions across both sectors are down 9.5% reflecting ongoing challenges in the residential construction sector.

Overall permits declined 3.0% to a 1.37-million-unit annualized rate in June. Single-family permits decreased 2.4% to an 871,000-unit rate and are essentially flat compared to June 2025. Multifamily permits are down 4.2% to an annualized 496,000 pace and are down 5.7% compared to June 2025. Looking at regional permit data on a year-to-date basis, total permits were 15.2% higher in the Northeast, 1.4% higher in the Midwest, 0.7% higher in the West, but 6.3% lower in the South. For single-family permits, the Midwest was the only region to post an increase, rising 1.3% reflecting the residential construction strength in the region.



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Single-Family Permitting Continued to Weaken Through May – Eye On Housing

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State-level permitting activity continued to reflect a divided housing market through the first five months of 2026. Elevated mortgage rates and ongoing affordability challenges continued to weigh on single-family construction across much of the country, while multifamily permitting remained comparatively stronger, supported by gains in several regions despite continued weakness in parts of the South.

Over the first five months of the year, the number of single-family permits issued nationwide reached 380,130. Compared with the same period in 2025, this represents a 6.1 percent decline compared with the May 2025 total of 404,977. In contrast, multifamily permitting activity remained stronger, with 208,192 permits issued nationwide, marking a 6.5 percent increase from the same period last year.

Regionally, year-to-date single-family permitting declined in all four regions through May. The Midwest was essentially flat, while the South declined 5.3 percent, the West fell 9.4 percent, and the Northeast posted the largest decline, down 12.2 percent. Multifamily permits increased in three of the four regions, led by the Northeast (up 32.9 percent), followed by the West (up 18.3 percent) and the Midwest (up 5.0 percent). The South was the only region to post a decline, with multifamily permits falling 5.7 percent, driven largely by reduced permitting activity in major metropolitan areas across the region.

At the state level, ten states and the District of Columbia recorded year-over-year increases in single-family permits through May, with gains ranging from 54.5 percent in the District of Columbia to 0.2 percent in Connecticut. The remaining 39 states posted declines, led by Nevada, which recorded the steepest drop at 28.5 percent. Kentucky reported no change.

The ten states issuing the highest number of single-family permits accounted for 62.8 percent of all single-family permits issued nationwide. Texas led the nation with 61,157 permits issued through May 2026, although this represented a 7.4 percent decline from the same period in 2025. Florida, the second-highest state, recorded a 5.5 percent decline, while North Carolina, ranking third, posted a 9.5 percent decrease.

Between May 2026 and May 2025, 33 states and the District of Columbia recorded increases in multifamily building permits, while 17 states experienced declines. Rhode Island posted the largest percentage increase, with multifamily permits rising 158.6 percent, from 251 to 649 units. In contrast, Nevada recorded the steepest decline, with permits falling 77.6 percent, from 3,702 to 828 units.

The ten states issuing the highest number of multifamily permits accounted for 62.6 percent of all multifamily permits issued nationwide. Through the first five months of 2026, California, which issued the largest number of multifamily permits, posted a 47.9 percent increase compared with the same period last year. Texas, the second-highest state, recorded a 23.3 percent decline, while Florida, ranking third, saw multifamily permits decrease by 37.4 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. It is worth noting that the largest multifamily markets continue to show declines. Gains for multifamily permitting are occurring in smaller markets and for smaller builders.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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2025 New Single-Family Starts by Census Division – Eye On Housing

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Persistently high mortgage rates, elevated costs for builders, and ongoing supply-side constraints continued to weigh on single-family construction in 2025. According to the NAHB analysis of the 2025 Survey of Construction (SOC), a total of 939,182 new single-family units started construction nationwide. This represents a 6.9% decline compared to 2024.

Among the nine Census divisions, the South Atlantic division continued to lead the nation with 308,189 starts in 2025, representing about one-third of all new single-family starts. The second highest was the West South Central division at 171,247 starts, followed by the Mountain division with 106,549 starts and the Pacific division with 95,940 starts. Collectively, the South Atlantic, West South Central, and Mountain divisions accounted for roughly 62% of total new single-family housing starts in 2025.

The East North Central division recorded 87,589 new single-family starts in 2025, followed by the East South Central division with 62,674 starts and the West North Central division with 44,996 starts. The Middle Atlantic division posted 42,328 starts, while New England remained the smallest division by volume, with 19,670 new single-family starts.

Regional performance varied considerably in 2025. Only three of the nine Census divisions posted year-over-year growth in single-family starts. The East South Central division recorded the strongest annual gain, rising 13.7%, followed by the East North Central division at 8.0% and the Middle Atlantic division at 4.0%.

In contrast, the remaining six divisions experienced declines. New England recorded the steepest drop, with starts falling 26.3% from the previous year. The Mountain and South Atlantic divisions, both of which posted gains in 2024, reversed course in 2025, declining 15.4% and 10.5%, respectively. Single-family starts also decreased 8.8% in the West South Central division, 7.5% in the West North Central division, and 3.3% in the Pacific division.

Overall, the 2025 SOC data points to a more uneven regional housing market than in 2024. While parts of the Midwest and the Middle Atlantic region continued to expand, declines in the nation’s largest home building regions, particularly the South Atlantic, Mountain, and West South Central divisions, more than offset those gains, driving the national decline in single-family housing starts.



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