Investing.com -- The Census Bureau reported April new residential construction data on Friday, showing a resilient but softer single-family housing market, according to DA Davidson analysts.

April housing starts came in at a seasonally adjusted annualized rate of 1.47 million, down 3% from March's pace but up 5% year-over-year due to multifamily gains. Single-family starts registered 930,000 in April, declining from March levels.

The single-family starts rate was down 2% year-over-year and 9% month-over-month from March. The single-family permitting rate for April was 872,000, marking a 3% monthly decline and 6% year-over-year decrease. The single-family permitting rate has largely held within an 850,000 to 900,000 range since mid-2025.

Multifamily construction continued its strong start to the year, with the starts pace in April up 23% year-over-year.

From a geographic perspective, on a year-to-date basis, the Midwest has been the best performing region with single-family starts up 5% year-over-year, followed by the South at down 5%, the West at down 6%, and the Northeast at down 19%.

The number of units under construction extended its streak of year-over-year declines to 33 months, with total units 9% lower than last year and single-family units 7% lower. Units under construction have been stable sequentially from the start of the year.

Production builders have made progress reducing unsold inventory over the latter part of 2025 and early 2026. Builder confidence remains challenged, with the Housing Market Index remaining well below 50.

Industry forecasters expect low single-digit year-over-year declines in single-family and total housing starts for 2026.

DA Davidson maintains Buy ratings on Trex Company (NYSE: TREX) and Louisiana-Pacific (NYSE: LPX), both labelled Top Pick,, noting both companies have greater repair and remodeling exposure in their core businesses.