Despite persistent headwinds facing the construction industry, U.S. housing starts  rebound in a modest sign of resilience in April. According to the U.S. Census Bureau, housing starts rose 1.6% month-over-month after a sharp 10.1% decline in March. While still slightly down from a year ago, the April uptick in new construction activity offered some relief to developers and market watchers looking for stabilization in the housing sector.

West Region Sees Permit Growth

Although the national housing permit data showed a decline—down 4.7% month-over-month—there was good news in the West. Total permits issued in the Western United States increased by 3.4% from March. This growth indicates that some regional markets remain active and may help support broader recovery efforts, even as national trends face pressure from supply chain issues and reduced demand.

Single-family permits in the West, however, saw a slight dip of 2%, reflecting ongoing caution among homebuilders. Still, the overall increase in total permits issued is a sign that projects are still moving forward, particularly in multifamily developments, which have shown greater resilience during the past year.

National Construction Activity Faces Challenges

Single-family housing starts declined 2.1% in April, reaching their lowest level since July 2024. Compared to the same time last year, single-family starts are down 12%. Nonetheless, the overall 1.6% month-over-month increase in total housing starts points to continued investment in housing construction, even as builders face rising material costs and labor shortages.

Builder confidence has taken a hit recently, and the Census Bureau’s data suggests that near-term construction activity may remain subdued. Yet, April’s modest rebound in total housing starts offers some encouragement that the sector is adapting to evolving economic conditions.

Housing Starts Rebound in a Mixed Market

In the Western region, housing starts fell significantly—down 16.1% overall and 18.7% for single-family homes. This sharp drop underscores the volatility in regional construction activity. Still, the uptick in permit approvals could point to a coming wave of new projects, particularly as local governments and developers find ways to navigate constraints.

With builder sentiment trending lower, industry experts anticipate a slower pace of construction in the coming months. But the April data shows that the foundation for future growth remains. As demand begins to shift and builders look for cost-effective ways to deliver housing, continued monitoring of permits and starts will be key indicators of longer-term recovery.

For now, the slight housing starts rebound in April is a welcome sign that the industry may be finding its footing after a challenging start to the year.