Residential Construction Market Analysis Report

This document is a market analysis report focusing on residential construction trends in the United States as of February 2026. It outlines the performance of housing starts, which rose by 6.2% in December 2025, marking a recovery from previous declines. Despite this increase, total housing starts were down 7% compared to the previous year. The report details the performance of single-family and multifamily housing starts, noting a modest rebound in single-family starts and a significant increase in multifamily starts. Regional performance is discussed, highlighting strong growth in the West and Northeast, while the South is expected to see continued declines. The report also addresses housing completions, which rose by 2.3% in December but remain on a downward trend. Furthermore, it examines the impact of mortgage rates and economic conditions on homebuilding, indicating that while some support may arise from labor market improvements, risks remain due to high inflation and tight credit conditions. Overall, the report suggests that homebuilding will continue to expand at a modest pace.