US single-family homebuilding rises in December as permit applications drop

US single-family housing starts rose in December despite a decline in future permits. High material costs and labor shortages continue to impact the industry.

Single-family housing starts in the US USUS rose 4.1% in December to a seasonally adjusted annual rate of 981,000 units, according to data announced today, February 18, 2026. The report, issued by the U.S. Commerce Department Census Bureau, also showed that permits for future single-family construction fell 1.7% to 881,000 units. This divergence indicates a near-term rebound in building activity while simultaneously signaling weaker prospects for future supply.
The figures highlight a shift in the residential construction landscape, where immediate building activity is increasing even as the pipeline for future projects appears to be tightening. This trend is of particular concern to industry organizations such as the National Association of Home Builders, as it underscores the ongoing challenges regarding inventory and affordability in the single-family housing market. The data suggest that while builders are currently active, the outlook for future construction starts is becoming more constrained.
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