U.S. December building permits revised to +4.8% from +4.3%, annual rate to 1.455 mln units from 1.448 mln units

U.S. December building permits revised to +4.8% from +4.3%, annual rate to 1.455 mln units from 1.448 mln units

U.S. December Building Permits Revised Upward, Reflecting Slight Acceleration in Housing Demand

The U.S. Census Bureau revised its December 2025 building permits data upward, reporting a 4.8% monthly increase to a seasonally adjusted annual rate of 1.455 million units, up from the initially reported 4.3% rise to 1.448 million units. This revision underscores a modest rebound in residential construction activity after softer readings in prior months, though annual figures remain below 2024 levels.

Total building permits in December included 881,000 single-family units, a 1.7% decline from November, and 574,000 units for buildings with five or more units, reflecting a significant 18.1% surge in multifamily authorizations. Regionally, permits rose sharply in the Northeast (44.1%) and Midwest (6.6%), while the South saw a 4.1% decline according to regional data.

For the full year, 2025 permits totaled approximately 1.43 million units, a 3.6% annual decline compared to 2024. Despite December's upward revision, the sector remains below the 1.48 million permits issued in December 2024 as reported by the Census Bureau.

Housing starts also showed resilience in December, rising 6.2% to 1.404 million units, driven by a 4.1% increase in single-family starts and a 11.3% jump in multifamily starts. However, annual starts for 2025 fell 0.6% to 1.36 million units, reflecting ongoing challenges such as high borrowing costs and labor constraints.

Economists note that while December's data signal a temporary stabilization, broader trends suggest a modestly weaker construction sector compared to 2024. "January starts may soften due to severe winter weather," said Oxford Economics' Nancy Vanden Houten, anticipating a gradual recovery in 2026.

The revised permits data highlight a mixed outlook for residential construction, with short-term momentum tempered by long-term headwinds. Investors and policymakers will closely monitor upcoming reports for signs of sustained improvement.

Source: Mortgage News Daily, December 2025 Housing Starts Analysis: U.S. Census Bureau, December 2025 Building Permits Report
Source: Trading Economics, Regional Permit Trends: Regional Permit Trends
Source: U.S. Census Bureau, Annual 2025 Construction Summary: Annual 2025 Construction Summary
Source: Mortgage News Daily, December 2025 Housing Starts Analysis: Mortgage News Daily, December 2025 Housing Starts Analysis
Source: RTTNews, Expert Commentary on Housing Market Outlook: RTTNews, Expert Commentary on Housing Market Outlook