Housing Market Poised for Future Growth Opportunities

US residential permits remain 19.2% below pre-pandemic trends, with 1.42M approvals in the year ended May 2026, marking a 42-month decline and the lowest level since before the pandemic. Detached single-family completions fell 2.5% in 2025 to 817,000, the third consecutive annual drop. Builders are reducing home and lot sizes and speeding construction, but faster build times cannot offset the lack of new permits, risking continued housing shortages and affordability pressures.