Housing Starts Surge 7.2% in January to 1.49 Million Annual Rate
New residential construction jumped to a 1,487,000 seasonally adjusted annual rate in January, the highest level in over a year and the fourth consecutive monthly increase.
Housing starts rose to a seasonally adjusted annual rate of 1,487,000 in January 2026, a 7.2% increase from December's revised figure of 1,387,000 units, according to data from the U.S. Census Bureau.
The January figure marks the highest level of new residential construction since early 2025 and extends a four-month streak of gains that has brought starts up 16.9% from October's 1,272,000 rate.
Monthly Housing Starts (SAAR, thousands)
| Month | Starts | Monthly Change |
|---|---|---|
| January 2026 | 1,487 | +7.2% |
| December 2025 | 1,387 | +4.8% |
| November 2025 | 1,324 | +4.1% |
| October 2025 | 1,272 | -- |
Context
The rebound in housing construction comes despite mortgage rates remaining elevated, with the 10-year Treasury yield -- a key benchmark for mortgage pricing -- sitting at 4.35% as of April 3. Builders appear to be responding to persistent housing supply shortages rather than rate conditions.
The four-month acceleration from 1.27M to 1.49M represents the strongest sustained construction recovery since the post-pandemic building boom, though starts remain below the 1.6M+ peaks seen in 2021-2022.