US construction starts surged to a $1.33 trillion annual rate in April 2026. A 41.4% jump in commercial projects largely propelled this increase. However, overall residential starts experienced a slight decrease during the same period, signaling a complex market.

Overall US construction starts rose significantly in April, but this growth was not uniform. A strong commercial and multifamily sector contrasted with a slight dip in broader residential activity. The divergence highlights a critical tension in the market.

Based on this bifurcated performance, the construction market appears to be prioritizing large-scale commercial and multifamily developments. The prioritization of large-scale commercial and multifamily developments suggests continued pressure on single-family housing supply and affordability for prospective homeowners.

What We Know About April 2026 Construction Starts

  • Total construction starts in the US rose 9% in April, according to IndexBox.
  • Nonresidential building starts increased 18.6% month over month in April, driven by a 41.4% surge in commercial construction, as reported by Construction Briefing.
  • Residential starts saw a slight decrease of 0.7% from March to April 2026, according to IndexBox.
  • New multifamily construction rose in April on a monthly and yearly basis, confirmed by Multifamily Dive.

Multifamily Surges While Residential Dips

New multifamily construction demonstrated consistent growth in April, rising on both a monthly and yearly basis. This sector's strength contrasts with the broader residential market's performance. The seasonally adjusted April starts rate for buildings with five units or more reached 529,000, indicating strong activity in larger housing projects.

Despite this strong multifamily showing, overall residential starts experienced a slight decrease of 0.7% from March to April 2026, according to IndexBox. The aggregate decline suggests that single-family housing starts are contracting more significantly. The strong pipeline and activity in multifamily housing is a bright spot, yet the slight contraction in overall residential starts indicates a persistent challenge for single-family home construction.