New government data shows that single-family housing starts in March were at a rate of 1.03 million, a 9.7% increase from the revised February figure of 941,000, the U.S. Census Bureau and the Department of Housing and Urban Development announced.
According to the agencies’ figures, privately-owned housing starts in March were at a seasonally adjusted annual rate of 1.5 million, a 10.8% rise from both the revised February estimate and the March 2025 rate of 1.35 million.
Single-family authorizations in March were at a rate of 895,000. The agencies said that is 3.8% below the revised February figure of 930,000. Privately-owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1.37 million, which is 10.8% below the revised February rate of 1.53 million and is 7.4% below the March 2025 rate of 1.48 million, they said.
Single-family housing completions in March were at a rate of 896,000. That’s 4.8% below the revised February rate of 941,000. Privately-owned housing completions in March were at a seasonally adjusted annual rate of 1.36 million, which is essentially unchanged from February but down 12.8% from the March 2025 rate of 1.56 million.
Starts Rise, Building Permits Fall
Bankrate Principal Analyst Ted Rossman said the housing starts numbers were better than expected.
“Housing starts popped in March, beating expectations, but building permits plummeted,” Rossman said. “This foreshadows slower times ahead. The economic uncertainty exacerbated by Iran war impacts and lingering tariff concerns continues to weigh on the housing market.”
Rossman said that, “In most U.S. metros, the market has shifted in favor of homebuyers, with sellers and builders having to offer price cuts and other incentives to get deals done.”
He said that mortgage rates “should be rangebound in the coming months, with the average 30-year fixed rate bouncing around the low-to-mid 6’s. That’s lower than a year ago, but for the housing market to meaningfully accelerate, it’s probably going to require average rates in the 5’s.”
Rossman added: “The good news, at the individual level, is that you can already get a 30-year fixed rate in the upper 5’s if you have strong credit and shop around aggressively.”
Rossman said legislators are working on how to move forward.
“Congress is still working on a landmark housing bill, which has the potential to loosen red tape and stimulate more homebuilding. The House and Senate are currently at odds regarding next steps, with a proposed ban on institutional investors one of the main sticking points,” Rossman said. “While there is considerable disagreement regarding the path forward, it’s clear that more home building is essential to ease the inventory crunch and make it easier to buy a home — especially your first home. Homeownership remains a key component of the American Dream and the largest wealth-builder for millions of American households.”
