March 2026: Housing starts increased in March, but falling new home prices, rising resale inventory could keep builders sidelined

• Building permits issued in March fell to 1,372,000 (SAAR). That’s 10.8% below the revised February rate and is 7.4% lower than in March 2025. Single-family permits were at a rate of 895,000 in March. This is 7.9% lower than the previous year.
• Housing starts increased to 1,502,000 (SAAR) in March, up 10.8% from the revised February estimate and 10.8% higher than in March 2025, according to the U.S. Census Bureau.
• Single-family housing starts increased to 1,032,000 (SAAR) in March, 9.7% above the February estimate and 8.9% higher than in March 2025.

What happened: Housing starts increased nationwide and in every region in March. Single-family homebuilding increased in February and surpassed year-ago levels. 

While this means builders are starting and finishing previously authorized construction on current building sites, permitting activity for future projects trailed 2025 levels in March. Building permits fell for both single-family and multifamily construction.

Rising competition from resale inventory could continue to weigh on new home sales and thus, future building projects. Rising construction costs and labor shortages could also temper new development.

Zillow data shows the median price per square foot for newly built homes was down 1.8% year over year in February. Lower prices could keep builders on the sidelines.