Why 2025 Is the Perfect Year to Build Your Dream Home

The U.S. Census Bureau’s latest report on new residential construction provides a comprehensive overview of the housing market’s performance as of December 2024. With declines in Building Permits and Housing Starts, its clear the residential construction of new homes is slowing; however, with less demand home builds are being completed at a faster rate.

Building Permits

In December 2024, the issuance of privately-owned housing unit permits stood at a seasonally adjusted annual rate of 1,483,000. This figure represents a slight 0.7% decrease from the revised November rate of 1,493,000 and a 3.1% decline compared to December 2023’s rate of 1,530,000. Notably, single-family authorizations experienced a 1.6% uptick from November, reaching a rate of 992,000. Conversely, authorizations for units in buildings with five units or more were at a rate of 437,000 in December.

Over the entirety of 2024, an estimated 1,471,200 housing units were authorized by building permits, marking a 2.6% decrease from the 2023 total of 1,511,100.

Housing Starts

December saw a significant surge in housing starts, with a seasonally adjusted annual rate of 1,499,000. This represents a 15.8% increase from November’s revised estimate of 1,294,000. However, when compared to December 2023’s rate of 1,568,000, there was a 4.4% decline. Single-family housing starts in December were at a rate of 1,050,000, reflecting a 3.3% rise from November’s revised figure of 1,016,000. Meanwhile, starts for units in buildings with five units or more reached 418,000.

Throughout 2024, approximately 1,364,100 housing units were initiated, indicating a 3.9% decrease from the 2023 figure of 1,420,000.

Housing Completions

The rate of housing completions in December was 1,544,000, a 4.8% decrease from November’s revised estimate of 1,621,000 and a 0.8% decline from December 2023’s rate of 1,557,000. Single-family housing completions stood at 948,000, down 7.4% from November’s revised rate of 1,024,000. For units in buildings with five units or more, the completion rate was 570,000.

In total, 1,627,900 housing units were completed in 2024, representing a 12.4% increase over the 2023 figure of 1,448,800.

While the decline in demand may seem like a challenge for the housing market, it presents a unique opportunity for future homeowners. With fewer buyers competing for resources, 2025 could be the perfect time to bring your dream home to life. Partner with Casper Builders to take advantage of this moment and create a custom-built home tailored to your vision. Our expertise and commitment ensure your project will be completed with precision and care, making 2025 the year your dream becomes a reality.

Source: U.S. Census Bureau, New Residential Construction Report, December 2024.