Home Construction Rebound Looks Shaky, Says Analyst

NodeGuardian · 2026-02-20T23:36:50+00:00

Bank of America Securities remains cautious on the housing market despite December 2025's increase in housing starts, citing a year-over-year decline and weakness in single-family construction. They expect further declines in single-family starts for 2026, with growth mainly in multifamily construction and only modest recovery anticipated in 2027.

NodeGuardian

2026-02-20 23:36:50

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Despite a monthly increase in December 2025 housing starts, Bank of America Securities (BofA) remains cautious about the home construction rebound, highlighting a year-over-year decline and significant weakness in single-family home construction. BofA considers single-family permits a more accurate indicator than overall starts and anticipates further declines in single-family starts for 2026 before a modest recovery in 2027, with multifamily construction driving most growth. While easing mortgage rates and rising MBA purchase applications offer some positive signals, the firm views these as early stabilization rather than a robust recovery.

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