Residential construction activity began 2026 on a mixed note, with single-family permitting weakening significantly while multifamily activity remained relatively stable. Higher borrowing costs and affordability constraints continue to weigh on single-family construction, while multifamily permitting shows signs of resilience despite regional variation.

Over the first month of the year, the number of single-family permits issued nationwide reached 62,034 — a 15.2% decline compared with the January 2025 (73,115 permits). Multifamily permitting activity was essentially flat, with 38,215 permits issued nationwide, dropping 0.5% from the same period last year.

 

Regional Breakdown

Single-Family Permitting

Regionally, single-family permitting declined in all four regions:

• Midwest (down 9.1%)
• Northeast (down 10.6%)
• South (down 14.7%)
• West (down 20.1%)

The 10 states issuing the highest number of single-family permits accounted for 63.8% of all single-family permits issued nationwide.

Texas led the country with 9,580 permits issued at the start of 2026, although this represented a 21.3% decline compared with January 2025. Florida — the second-highest state — saw permits fall by 14.9%, while North Carolina — ranked third — experienced a decline of 9.8%.

Multifamily Permitting

Multifamily permits increased in three of the four regions:

• Northeast (up 39.4%)
• West (up 35.5%)
• Midwest (up 10.9%)

The South saw a decline of 24.2%, driven largely by a 42% decrease in Atlanta-Sandy Springs-Roswell, GA metropolitan areas and a 39% drop in the Houston-Pasadena-The Woodlands, TX metropolitan area.

The 10 states issuing the highest number of multifamily permits accounted for 63.1% of all multifamily permits issued nationwide.

Over the first month of 2026, California — which issued the most multifamily permits — recorded a substantial increase of 119.2%. Texas — the second-highest state — posted a decline of 24.4%, while New York — ranking third — saw multifamily permits rise by 66.7%.

NAHB AVP of Forecasting and Analysis Danushka Nanayakkara-Skillington provides more details, including interactive maps and top 10 markets for single-family and multifamily permitting, in this Eye on Housing post.