US Housing Market: Predictions For New Construction Levels in 2026
Summary
The U.S. housing market had low new housing starts at the end of 2025. Even though there was a slight increase from November to December, the numbers were lower than in December 2024. Experts say factors like economic worries and affordability are making people hesitate to buy new homes.Key Facts
- In December 2025, new housing starts in the U.S. were 6.2% higher than November but 7.3% lower than December 2024.
- For the entire year of 2025, there were about 1.36 million new housing units started, slightly less than in 2024.
- Economic uncertainty and affordable housing are key reasons buyers are holding back, according to experts.
- Builders' confidence in the market for new single-family homes dropped, as per the National Association of Home Builders.
- Permits for new construction fell by 8% year-over-year in November and 2.2% in December.
- Many builders are offering incentives to attract buyers, but some buyers remain cautious.
- Challenges like high land costs and a lack of construction workers are making it tough to build new homes.
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