The single-family and multifamily markets for new construction are retreating.

In the second quarter, housing starts fell 4.2% to a 1,348,000 annual rate — the lowest reading since the second quarter of 2020. Single-family starts dropped 5.2%, while multifamily starts fell 1.0% to a 342,000 annual rate, also the lowest since 2020. Despite this, housing starts are expected to reach 1.35 million by the end of this year, 1.36 million in 2025, and 1.41 in 2026.

Although the housing market is seeing a flood of new units, housing completions have likely peaked after reaching a 17-year high. We nevertheless expect total construction volume to rise by 5.28% this year. Manufacturing and healthcare construction are projected to increase by over 13%, while infrastructure is expected to increase by 10%, contributing to the overall increase in activity.