For the remainder of 2026, many housing economists expected modest improvement as lower rates, better affordability and expanding inventory supported activity across the US.
A builders group expected single-family construction to rebound modestly, helped by easing mortgage rates and demographic demand from millennials moving through prime homebuying years.
That outlook called for slim single-family growth through the rest of 2026, followed by stronger gains in 2027 as financing conditions eased further.
Townhouse construction also remained a bright spot, with market share at a multi-decade high, signaling continued interest in affordability-focused home designs nationwide.
Multifamily starts were expected to cool through 2026 and 2027 as tighter financing and rising construction costs pushed the market toward constrained development.
U.S. Housing Starts: Where Momentum Returned
