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April’s housing data underscores a challenging landscape for new construction, particularly in the single-family segment, and the privately-owned segment isn’t far behind.

Builders are navigating a complex mix of elevated costs, rising mortgage rates and waning consumer confidence, which is weighing heavily on the market.

Odeta Kushi | First American Deputy Chief Economist

“Builders’ growing pessimism is partially driven by the increase in mortgage rates in April, which impacts both builder and buyer financing costs,” First American Deputy Chief Economist Odeta Kushi said in a statement. “Residential construction costs are still more than 40 percent higher compared to pre-pandemic levels and skilled labor shortages persist.”

Policy instability is another source of strain. “Policy uncertainty also weighs heavily on builder sentiment, with 78 percent of builders reporting difficulties pricing their homes recently due to uncertainty around material prices,” Kushi noted, citing NAHB data. “The recent announcement that the United States and China will reduce tariffs for 90 days may offer temporary relief and brighten the outlook.”

This backdrop of uncertainty is reflected in the numbers, a new data report from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD) indicated.

Source: U.S. Census Bureau and the Department of Housing and Urban Development (HUD)

Privately-owned housing starts in April rose modestly, up 1.6 percent from March to a seasonally adjusted annual rate of 1,361,000, though they remain 1.7 percent below the April 2024 level. Single-family starts dropped 2.1 percent to 927,000. Meanwhile, multifamily activity climbed from 371,000 to 420,000 from March to April.

Completions followed a similar pattern. Privately-owned housing completions fell 5.9 percent from the previous month to 1,458,000 and 12.3 percent year over year. Single-family completions declined 8 percent to 943,000, while multifamily completions edged up from 503,000 in March to 507,000 in April.

Permits — a forward-looking indicator of new builds — also declined. Permits for privately-owned housing units dropped 4.7 percent to 1,412,000, while single-family permits fell 5.1 percent to 922,000. Multifamily permits decreased from 445,000 units to 431,000.

“The April report was not a great one for single-family housing, with single-family starts, permits and completions all declining,” Kushi said. “The slower pace of single-family permits suggests a reduced rate of single-family groundbreaking in the upcoming months, due to higher inventory levels in key markets and ongoing challenges with costs and affordability.”

Builder sentiment has dropped accordingly. In May, it fell to the same level seen in November 2023, matching a trough not seen since December 2022. “This growing pessimism was broad-based across all NAHB Housing Market Index (HMI) components,” Kushi added.

Still, there may be some relief on the horizon. Kushi remains cautiously optimistic.

“The long-term housing shortage, builders’ ability to offer incentives, and potentially less restrictive monetary policy could be tailwinds,” she said.

Email Richelle Hammiel

Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the Inman Community and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!

Real estate investing is finally getting a glow-up — and not the kind that requires granite countertops.

Industry veteran and CEO Bernice L. Ross will launch Profit.RealEstate, a new educational platform, aimed at demystifying investing for the everyday buyer, on Thursday, May 8. Alongside it comes “The Investor Scoop,” its daily newsletter packed with bite-sized insights that make smart investing feel more like a power move and less like a chore, with a laugh or two along the way, Ross informed Inman.

With over four decades in the industry, seven books and over 1,600 articles under her belt — many of them published with Inman — Ross is on a mission to help others build wealth through strategic, real-world investing.

“Real estate is No. 1. We want to have more people become aware of down payment assistance and know that they can get into a house now,” Ross said in an interview with Inman. “The second thing is, I want to show them a path to becoming a real estate investor.”

“The Investor Scoop” is built for people just starting out, whether it’s first-time buyers exploring down payment assistance, house hackers or agents working with one- to four-unit properties, this resource meets them where they are.

This focus on the one- to four-unit market isn’t accidental; it’s strategic. Ross emphasizes that this niche is one of the most accessible and underutilized markets in the real estate industry.

“Instead of looking at a single-family [unit], look at a duplex, triplex or fourplex, where you can rent out part of it, or look at getting something that has an extra bedroom that you might be able to rent out to help with your payments,” Ross said. “Look at becoming a real estate investor on your first purchase.”

Profit.RealEstate isn’t simply about education; it’s about momentum, Ross said. She views the platform as a launchpad for new investors ready to scale their portfolios and creativity, whether that means flipping, fractional ownership or simply finding new ways to stretch their finances.

“We want to take a look at house hacking and flipping, and it depends on all these mom and pops out there,” she said. “That’s really who we want to reach. We want to show them ways to manage their money and how they can become their own banker.”

To bring the vision of “The Investor Scoop” to life, Ross has assembled a growing team of 25-plus contributors — a mix of industry pros, longtime colleagues and fresh thinkers.

“We’re bringing together this incredible bunch of people who are writing great content,” Ross said. “I’ve got some of my longtime friends, and they’re going to be contributing. We’ve got some real powerhouses, and I’ve got a few more very big ones coming on.”

Together, this lineup will deliver a wide range of content — from tax tips to tech tools, credit strategies to legal know-how — written in plain English and short enough to fit into a reader’s coffee break.

“It’s usually pretty clear, because these people are explaining what they do. A lot of times, they’ll tell stories of what they have experienced,” Ross explained. “Everybody that I’m working with is accustomed to working with people at all levels, from the beginner all the way to the more sophisticated. And I don’t care how sophisticated you are, there’s always more that you can learn.”

Beyond serving individual investors, Ross is especially passionate about helping real estate professionals create long-term financial security.

“I want more Realtors to be able to retire with something to have,” she said. “We want to show them the path.”

For over two decades, Ross has been a regular contributor to Inman, breaking down everything from home strategies and branding techniques to negotiation tactics agents can use daily. Most recently, Ross shared insights in articles on joining a team and marketing listings to other agents, and there’s plenty more advice in the pipeline. 

Email Richelle Hammiel

Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the Inman Community and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!

The swamp is being drained.

Back in February, real estate insiders pushed back on headlines declaring a collapse in the Washington, D.C. housing market under the Trump administration’s federal downsizing. At the time, market data showed little signs of crisis. But just a few months later, a new Redfin report reveals a sharp shift.

As of April 27, active listings in Washington, D.C. have surged 25.1 percent year over year, the largest jump on record and nearly double the national increase of 14.2 percent. New listings are also up 11.4 percent, compared to the nationwide gain of just 5.8 percent. It’s the highest level of inventory D.C. has seen since 2022.

Redfin attributes this spike in inventory to sweeping layoffs of federal workers in efforts to reduce federal spending, led by President Donald Trump’s administration and Elon Musk’s Department of Government Efficiency (DOGE). According to CNN, at least 121,000 federal workers have been laid off or targeted for layoffs. Given that federal jobs make up 11.1 percent of all employment in the District — more than any other metro analyzed by the APM Research Lab — the impact is particularly acute.

Mary Bazargan | Redfin Premier Agent

“Quite a few people in D.C. are selling their homes because they’re losing their jobs,” Mary Bazargan, a local Redfin Premier real estate agent, said in the report. “Many of those people are planning to leave the area because the cost of living is high, and they want a new job that allows them to work remotely and be closer to family.”

Bazargan recalled a recent transaction in which a buyer waived contingencies and bid above asking, but still lost out to an all-cash offer — proof, she said, that sellers are growing cautious amid economic uncertainty.

Though some early 2025 reports suggested listings were holding steady, the April data shows a different story. State-level data from the U.S. Department of Labor reveals that initial unemployment claims in D.C. peaked in February. With more layoffs expected this spring, Bazargan has been fielding a surge in calls from potential seller bracing for pink slips.

Despite the turmoil, D.C.’s housing market remains a hot commodity, with homes selling quickly and sale prices rising 4.1 percent year over year to $600,964 as of April 27.

Asad Khan | Redfin Senior Economist

“What’s happening with housing inventory in Washington, D.C. could be a sign of what’s to come in other U.S. housing markets,” Redfin Senior Economist Asad Khan said. “And while strong housing demand is buoying prices in D.C., the rest of the country isn’t so hot. Other markets may not be able to absorb further inventory growth without prices softening.”

The suburbs surrounding D.C. are seeing the steepest inventory gains, including Alexandria, Virginia (up 40.9 percent), Montgomery County, Maryland (up 38.5 percent) and Loudoun County, Virginia (up 36.8 percent).

Overall, nine of the 47 major metros Redfin analyzed had bigger inventory gains, led by Denver, while four metros, led by Phoenix, had higher increases in new listings.

To ensure the trend wasn’t the usual post-inauguration shuffle, Redfin reviewed historical data. While there was a brief uptick in listings after Trump’s 2017 inauguration, it quickly faded. This time, the surge is persisting, a sign that widespread federal layoffs are likely fueling and reshaping the region’s housing landscape.

Email Richelle Hammiel