TL;DR
U.S. single-family housing starts fell 4.6% in September to a seasonally adjusted annual rate of 859,000, according to federal data. Total housing starts declined 5.2% to 1.22 million, while builder representatives cited financing, affordability and construction-cost pressures.
U.S. single-family housing starts fell 4.6% in September to a seasonally adjusted annual rate of 859,000, as overall housing starts dropped 5.2% to 1.22 million, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The figures measure the pace of new residential construction and matter to homebuyers, builders and suppliers because they indicate how much new housing is being started.
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The reported annual rates represent the number of housing units that would be started over a 12-month period if construction continued at September’s pace. The single-family figure was 2.6% higher than in September 2025, despite the month-to-month decline. The report does not provide a seasonally adjusted unit count for the month itself.
Starts in the multifamily sector, which includes apartments and condominiums, fell 6.7% to an annualized 362,000. That pace was 24.9% below September 2025, according to the supplied figures. Combined single-family and multifamily starts, measured year to date, were 8.3% higher in the Northeast, 2% lower in the Midwest, 0.3% lower in the South and 6.3% lower in the West.
Permits, which indicate authorization for future construction rather than work already begun, also moved unevenly. Total permits edged down 0.2% to an annualized 1.40 million. Single-family permits fell 4% to 845,000, while multifamily permits rose 6.1% to 555,000. Year-to-date permit totals were up in the Northeast and Midwest, down in the South and unchanged in the West.
Fewer Starts, Tighter New Supply
A decline in starts can mean fewer homes enter the construction pipeline, although the September figures alone do not establish how many homes will ultimately be completed or how local prices and rents will respond. The distinction between single-family and multifamily construction also matters: the two sectors moved in different directions for permits, even as starts fell in both.
The National Association of Home Builders said builders face elevated borrowing and construction costs, labor shortages and affordability challenges. Those pressures are relevant to prospective buyers and renters because they can affect builders’ decisions about whether and what to build. The data do not show that any one factor caused September’s decline, and the report provides a national snapshot rather than detail on conditions in each local market.
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Starts and Permits Tell Different Stories
The September release covers housing starts and building permits, two separate measures in the construction process. A start records the beginning of construction on a housing unit; a permit is an authorization and does not guarantee that work will begin. Permit changes can therefore point to potential future activity, but they should not be treated as completed homes or a direct forecast of starts.
The annualized figures are seasonally adjusted rates, not counts of units started during September. The report’s year-over-year comparisons also differ by measure: single-family starts were up 2.6% from September 2025, while single-family permits were down 4.8%. For multifamily housing, starts were down 24.9% year over year and permits were down 0.2%. These comparisons show why a month-to-month decline should be read alongside both the prior-year measure and the permit data.
NAHB representatives tied the broader construction climate to borrowing costs, affordability, land, labor and materials. Those comments are the trade group’s assessment; the federal release supplies the measured starts and permit figures, but does not assign causes to their movements.
How Long the Slowdown Will Last
The September release does not establish whether the decline will continue in subsequent months, how much of the change reflects short-term variation, or how construction will develop across individual markets. It also does not quantify the separate effects of mortgage rates, labor availability, land prices, materials or regulation.
NAHB’s expectation of lower production in 2026 and further declines in 2027 is a forecast attributed to the association’s analyst; the supplied material does not include the forecast’s assumptions or a federal projection. The figures here also do not report completed homes, sales, prices or the size of the existing housing supply.
Watch the Next Housing Releases
Future federal starts and permit reports will show whether September’s declines persist, reverse or vary between single-family and multifamily construction. Readers should compare the next monthly release with both the prior month and the same month a year earlier, while keeping the annualized rates distinct from actual monthly unit counts.
NAHB said near-term building depends on financing conditions, mortgage rates, construction costs and regulatory barriers. Its forecast points to lower production in 2026 and further declines in 2027, but those remain projections. The next data releases will provide evidence on construction activity; they will not, by themselves, identify the cause of any change.
Key Questions
How many single-family housing starts were recorded in September?
The seasonally adjusted annual rate was 859,000 units, down 4.6% from the previous month. This is an annualized pace, not the number of homes started during September alone.
Did all types of housing starts decline?
Yes. Single-family starts fell 4.6% to an annualized 859,000, and multifamily starts fell 6.7% to 362,000. Overall starts declined 5.2% to 1.22 million.
What happened to building permits?
Total permits edged down 0.2% to an annualized 1.40 million. Single-family permits fell 4% to 845,000, while multifamily permits rose 6.1% to 555,000.
What reasons did builders give for the decline?
NAHB representatives cited high mortgage and borrowing costs, affordability challenges, rising construction costs, and pressures involving land and labor. Those are the association’s explanations; the federal figures report the changes but do not establish the causes.
Does September’s decline mean home construction will keep falling?
Not on its own. NAHB’s analyst forecast lower production in 2026 and further declines in 2027, but that is an industry-group forecast. Subsequent federal monthly reports will show whether the September trend continues.
Source: rss
