US Housing Starts Hit 15-Month High Despite Persistent Real Estate Slump

Key Facts

U.S. housing starts surged by 10.8% in March to 1.502 million units, reaching a 15-month high and beating expectations due to favorable weather. However, the commercial segment showed signs of cooling as the number of hotel rooms under construction fell for the 15th consecutive month to 136,990 units. Despite this broader decline, the luxury hotel segment saw supply growth of 4.5%, the highest increase across all categories. Meanwhile, future building permits unexpectedly plunged by 10.8% to their lowest level since August 2025, with multi-family permits dropping 23.5%. This divergence highlights structural challenges, as high interest rates continue to weigh on long-term project planning. Consequently, the outlook for the real estate sector remains mixed, balancing current construction resilience against a slowdown in future permits and commercial developments.

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