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Multifamily construction soared at the end of the year as December's overall housing starts beat expectations.
U.S. housing starts increased by nearly 16% month-over-month in December to an annual rate of 1.5 million homes, according to the Census Bureau.
Multifamily projects with five units or more saw a 59% increase from November to December, with more than 418,000 new units breaking ground, marking the most starts of any month in 2024.
Economists predicted starts would only jump 2.4% in December to an annual rate of 1.3 million homes, Markets Insider reported.
While the number of new construction starts rose, overall housing under construction was down 0.4% from November. The number of housing permits authorized dropped less than 1% in December after housing experts predicted a 3% drop.
The threat of new tariffs under the incoming Trump administration has many concerned about an increase in building material costs and interest rates potentially impacting housing construction. Trump has called for building more housing on federal lands, and he is expected to extend the opportunity zone program, which could help finance more housing projects.
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