Single-family housing permits dropped by 7% to 787,122 units in the first ten months of 2025 compared to 2024, as builders adjusted to high mortgage rates,, elevated construction costs, and, reduced buyer affordability, notes Globest. While single-family activity slowed, multifamily permitting rose by 5.7% during the same period, notes Eye On Housing.
Key Findings on 2025 Housing Permit Trends:
- Declining Demand: Single-family permits have struggled due to persistent economic headwinds and, high interest rates, leading to a long-term decline in new construction, notes Eye On Housing.
- Regional Variances: For single-family, the Midwest saw a 0.9% increase, while the West (-10.5%), South (-7.9%), and Northeast (-2.7%) all experienced declines through October 2025, note Globest and Eye On Housing.
- State-Level Impact: While 15 states gained in single-family permits, 35 states and D.C. declined, with Nevada seeing the steepest drop at 22.4%, according to Globest.
- Builder Adjustments: Builders are using incentives, such as mortgage rate buydowns, to boost, sales, note Realtor.com and LightBox.
- Multifamily Resilience: Despite a dip in single-family, multifamily, permitting remained, relatively strong with, 426,352 units, notes Eye On Housing.
The sector has seen a consistent, pullback in single-family activity, with many builders, adjusting to a more, selective buyer market and, higher, input costs, notes LightBox.
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Dreznin Pappas Commercial Real Estate LLC
Sean Dreznin
The Commercial Real Estate Alpha Site 
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