by Housing completions rose from September, marking one of the only bright spots in activity nationwide
WASHINGTON — The latest housing construction report from the U.S. Department of Commerce shows year-over-year and month-to-month building activity in October 2025 were down in all major segments with the exception of housing completions, which were up from September.
Housing completions totaled 1,386,000, up 1.1% from a revised September estimate of 1,371,000, the report noted, although they were down 15.3% from 1,636,000 in October 2024. Of these, 1,009,000, or 72.8% of the total in October, were single-family homes, up 6% from a revised September total of 952,000, with the balance being buildings with five or more units.
Housing starts totaled 1,246,000 in October, 7.8% below the October 2024 rate of 1,352,000 and 4.6% below a revised September estimate of 1,306,000. Of these, 874,000, or 70.1% of the total in October, were single-family homes, up 5.4% from a revised September total of 829,000, with the balance being buildings with five or more units.
Residential building permits totaled 1,412,000, 1.1% below 1,428,000 in October 2024 and .2% below the revised September rate of 1,415,000. Of these, 876,000, or 62% of the total in October, were for single-family homes, .5% below the revised September total of 880,000, with the balance being buildings with five or more units.
By region, the activity was as follows:
In the Northeast, building permits totaled 145,000, up 5.8% from October 2024 but down 1.4% from September. Housing starts totaled 154,000, up 41.3% from October 2024 and down .6% from September. Housing completions totaled 101,000, down 40.9% from October 2024 and down 32.2% from September.
In the Midwest, building permits totaled 199,000, down .5% from October 2024 and down 2% from September. Housing starts totaled 199,000, down 20.7% from October 2024 and up .5% from September. Housing completions totaled 174,000, down 22.3% from October 2024 and up 5.5% from September.
In the South, building permits totaled 731,000, down 3.9% from October 2024 and down 3.3% from September. Housing starts totaled 650,000, down 2.1% from October 2024 and up 1.2% from September. Housing completions totaled 826,000, up 2.8% from October 2024 and up 9.3% from September.
In the West, building permits totaled 337,000, up 2.1% from October 2024 and up 9.1% from September. Housing starts totaled 243,000, down 25.9% from October 2024 and down 21.9% from September. Housing completions totaled 285,000, down 36% from October 2024 and down 5.3% from September.
In all regions except the Northeast and the West, housing completions were up from September, suggesting that buyers in those regions were prepared to purchase new furniture for their homes.
Double-digit year-over-year declines in the Northeast, Midwest and West also could have prompted a decline in furniture purchases in those regions compared with the same periods the prior year.
In terms of housing completions, the South performed the strongest not only with year-over-year and monthly gains, but also in terms of the number of units completed.
The release of government data is roughly a month or so behind schedule because of government shutdown this past fall. Yet despite the declines in housing activity, builder confidence was up during the same period.
According to a previously released report from the National Association of Home Builders, builder confidence was 37 in October, up five points from September and the highest level since April.
Future expectations also surpassed a 50-point breakeven mark for the first time since last January, the report noted.
The survey also showed that 38% of builders reported cutting prices in October with the average price reduction rising to 6% the same month. This was the first time they had reduced prices this much since October 2024. The use of sales incentives also was 65% in October, unchanged since September.
While eating into homebuilder profits, such moves, along with reductions in interest rates, could make housing payments more affordable, particularly for new or first-time homebuyers. Ultimately, that could be good news for the industry as it frees up money in the budget for durable goods such as furniture.
Thus, the time continues to be right for aggressive promotions, product values and finance options. All those things combined could make furniture an even more compelling investment now and in the future.
