US housing construction starts remain robust at 1.36 million units in 2025, despite slowing population growth. Single-family housing starts at 943,000 units show homebuilders are adapting to market conditions by reducing prices and offering incentives. Lennar, a major homebuilder, is seeing average home prices drop to levels not seen since 2017, down 25% from peak pandemic prices. Multifamily construction also rose 17.4% to 416,000 units, the highest level since 1986 outside of 2021-2023. This increased housing supply comes at a critical time when US population growth has dramatically slowed, potentially helping to stabilize the overpriced housing market and provide more affordable options for buyers and renters.
