Con Dig (19-Aug-26) — US housing starts fell sharply in July as elevated construction costs, labor shortages, high financing expenses and economic uncertainty continued to weigh on residential construction activity, according to new federal data.

Total housing starts declined 12.4% from June to a seasonally adjusted annual rate of 1.24 million units, the US Department of Housing and Urban Development and the US Census Bureau reported.

Single-family housing starts fell 9.9% to an annualized rate of 808,000 units, down 15.7% from July 2025. Multifamily starts, including apartments and condominiums, dropped 16.8% to an annualized 431,000 units, an 8.9% decline year over year.

National Association of Home Builders (NAHB) Chairman Bill Owens said builders continue to face significant affordability challenges as higher mortgage rates keep many buyers out of the market while rising material, fuel and transportation costs increase construction expenses.

“The July decline in housing starts reflects broader weakness in the housing market,” said Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis. She added that the decline in single-family construction is particularly concerning given the continuing housing shortage in many markets.

Despite the weaker starts data, building permits pointed to stronger future activity. Overall permits increased 5% in July to an annualized rate of 1.44 million units.

Single-family permits rose 2.5% to 894,000 units, while multifamily permits climbed 9.4% to 549,000 units, suggesting builders remain cautiously optimistic about future demand.

Regionally, year-to-date housing starts increased 11.7% in the Northeast but declined 4.5% in the Midwest, 3.0% in the South and 3.8% in the West.

There were 579,000 single-family homes and 683,000 multifamily units under construction nationwide at the end of July.