Housing Starts Surge to 1.487 Million in January, Highest Since Late 2024
New residential construction jumped to a seasonally adjusted annual rate of 1.487 million units in January 2026, up 7.2% from December and 16.9% from the October trough.
The U.S. Census Bureau and HUD report housing starts reached a seasonally adjusted annual rate of 1.487 million units in January 2026, the strongest pace in months and a signal that builders are responding to sustained demand.
Housing Starts (Thousands, SAAR)
| Month | Starts |
|---|---|
| January 2026 | 1,487 |
| December 2025 | 1,387 |
| November 2025 | 1,324 |
| October 2025 | 1,272 |
| September 2025 | 1,328 |
| August 2025 | 1,291 |
The 100,000-unit jump from December to January (7.2%) marks the fourth consecutive monthly increase. From the October low of 1.272 million, starts have risen 16.9%.
The acceleration coincides with the Fed's rate pause at 3.64%. While mortgage rates remain elevated compared to 2021 levels, the stability appears to have given builders confidence to increase activity. The chronic housing shortage -- estimated at 3 to 5 million units nationally -- continues to provide fundamental demand support.
Source: U.S. Census Bureau and HUD via FRED, Federal Reserve Bank of St. Louis.