Amidst uncertainty in the broader economy, housing production is facing some drag. Some subsectors of the industry are flat, while others are on the decline.

According to figures released by the U.S. Census Bureau in June 2025, a sharp drop in multifamily production pushed overall housing starts down in the month of May. Single-family starts increased slightly, but not nearly enough to compensate for the negative trend in multifamily production.

According to the Census, the seasonally adjusted, annualized rate of private housing starts for May measured 1,256,000. That is 9.8% below the revised rate for the previous month, and 4.6% below the rate for the same month last year.

Single-family home starts were slightly positive. They measured a seasonally adjusted, annualized rate of 924,000, which is less than half a percent (0.4%) above the revised rate for April.

This essentially flat rate of growth in the single-family market could not compensate for the decline in multifamily production. According to the same statistics, the seasonally adjusted, annualized rate for multifamily housing starts measured 316,000, which is 30.5% lower than the previous month and 5% lower than the same month last year.

The figures attempt to measure annualized trends throughout the year to assess how the market will perform. Seasonally adjusted, annualized figures project how many housing developments will begin (starts) over the course of the next 12 months, if the market continues at its current pace.

The figures depict a housing industry facing headwinds from such factors as stubborn interest rates, high construction costs and broader uncertainty. The National Association of Home Builders describes current conditions as a “disappointing spring market” and forecasts that “2025 will end with a decline for single-family housing starts.”