In April 2025, the number of housing starts in the United States experienced a modest uptick. The latest U.S. Census Bureau report, issued mid-May, shows builders initiated the construction of new homes at a seasonally adjusted annual rate of 1,361,000.¹ This marks a 1.6% increase from March 2025. Although the total housing starts were 1.7% lower compared to a year ago,2 this recent monthly rise shows builders continue working to expand housing options.

An Important Metric for Real Estate Investors

Housing starts track the number of new residential properties that started construction in the preceding month. The data includes single-family homes, residences with 2-4 units (condominiums or townhomes), and buildings with five or more units (apartment complexes). Note that overall starts increased, but single-family home starts fell in April, while multi-family construction surged. This indicates a strategic focus by builders on diverse housing solutions. Understanding these categories is vital, as single-family construction affects traditional home availability, while multi-family units expand accessible housing and rental options.

"Tracking housing starts is an important metric for understanding the health of the U.S. housing market and the overall economy," said Robert Odom, president of the mortgage division at Ameris Bank. “These trends highlight how the market is adapting, and we see an ongoing need for diverse housing solutions to meet demand.”

Housing Starts and Mortgage Rates

Mortgage rates can encourage or deter homebuyers, real estate investors, and builders, ultimately influencing new housing starts. Lower mortgage rates favor buyers and can increase demand for homes. As a result, builders may accelerate their construction plans to capitalize on the renewed interest. Conversely, when mortgage rates rise, homebuyer demand often decreases, which can lead to a slowdown in new home construction. As of May 21, 2025, the average rate for a 30-year fixed mortgage is 6.93% – in line with the average rate reported a year ago.³

The Key to Construction Activity Growth

Fluctuating mortgage rates, rising material costs, and fewer building permits can impact homebuying and new housing starts. However, Odom says there is a silver lining, "Even a small increase in demand for new home purchases can lead to construction activity growth and create more opportunities for prospective homeowners." 

Your Homeownership Journey Starts Here

At Ameris Bank, we are committed to empowering your homeownership journey. Understanding these market trends is key. Our experienced mortgage bankers are ready to provide personalized guidance to help you navigate current conditions and explore the best solutions for your situation. Let's discuss how we can help you achieve your homeownership dreams.


Sources:
^{1, 2} https://www.census.gov/construction/nrc/current/index.html
³ https://www2.optimalblue.com/obmmi

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank is not affiliated with nor endorses the U.S. Census Bureau or Optimal Blue.