U.S. homebuilders are leaning into single-family construction as multifamily development faces a sharp slowdown, signaling a shift in priorities for developers and investors alike. The National Association of Home Builders’ latest report reveals that single-family housing starts jumped 6.4% in November to a seasonally adjusted annual rate of 1.01 million units.

The NAHB found that year-to-date single-family starts are up 7.2%, driven by limited resale inventory that’s forcing more buyers toward new homes. Builders are doubling down on the single-family sector as demand remains firm, with permits for new single-family homes inching up 0.1% to a rate of 972,000 units in November — an 8% increase from the same period last year.

The steady rise in both starts and permits suggests that homebuilders are confident about continued demand, even as higher mortgage rates put pressure on buyers.