TL;DR
U.S. single-family housing starts dropped 4.6% in September to a seasonally adjusted annual rate of 859,000, according to HUD and the Census Bureau. Builders cited by the National Association of Home Builders face elevated borrowing, construction and labor costs, while the report does not establish how much each factor contributed to the decline.
U.S. single-family housing starts fell 4.6% in September to a seasonally adjusted annual rate of 859,000 units, according to the U.S. Department of Housing and Urban Development and the Census Bureau. The decline came as total housing starts dropped 5.2%, while builders cited by the National Association of Home Builders (NAHB) described high financing and construction costs as obstacles to home building.
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The government report put overall housing starts at a 1.22 million annualized rate, down from the prior month. That figure is a seasonally adjusted pace: it estimates how many units would be started over a year if construction continued at September’s rate. It is not a count of homes begun during the month.
Within the total, single-family starts declined 4.6% to an annualized 859,000. The source report says that rate was 2.6% higher than in September 2025. Multifamily starts, which include apartments and condominiums, fell 6.7% to an annualized 362,000, a rate 24.9% below September 2025.
Construction permits, an indicator of planned building activity, also weakened in the single-family segment. Total permits edged down 0.2% to a 1.40 million annualized rate. Single-family permits declined 4% to 845,000 and were 4.8% below September 2025, while multifamily permits rose 6.1% to 555,000. The report does not specify the precise number of homes represented by the monthly rate changes.
Fewer Starts Add to Supply Pressures
Housing starts matter because they track construction activity that can add homes to the market over time. A decline in single-family starts may mean fewer newly built houses are moving into the construction pipeline, though one month’s data alone cannot establish a lasting trend or quantify effects on prices and rents.
The figures also show different conditions across housing types. Single-family starts fell month to month, while multifamily starts were substantially lower than a year earlier; meanwhile, multifamily permits increased in September. These measures capture different stages of development and do not guarantee that permitted projects will be built.
NAHB officials link the slowdown to mortgage rates, affordability challenges and construction costs. Those are the association’s explanations, not a breakdown in the government data measuring the contribution of each factor. For prospective buyers and renters, the report is a snapshot of construction supply, not a direct forecast of housing costs.
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Starts, Permits and Regional Patterns
The starts figures come from a joint report by HUD and the Census Bureau. A seasonally adjusted annual rate expresses the pace of activity in annual terms after accounting for seasonal patterns. It allows month-to-month comparisons but should not be read as the number of units started in September itself.
The supplied report also gives year-to-date regional comparisons for combined single-family and multifamily starts: starts 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. These figures cover both housing types and should not be treated as regional single-family results alone.
For permits, the year-to-date regional figures were 10.6% higher in the Northeast and 2.2% higher in the Midwest, while the South was down 3.2% and the West was unchanged. The source material does not provide the underlying regional unit counts or the precise reporting date.
One Month Does Not Set the Trend
The report provides monthly rates and comparisons but does not identify how much of the decline was caused by mortgage rates, labor shortages, material costs or other factors. The source material also does not give the prior-month unit rates, the report’s publication date, or revisions to earlier estimates.
It is also unclear whether the September decrease will persist. NAHB’s expectations for lower production in 2026 and further declines in 2027 are forecasts, and the supplied material does not include the assumptions behind them. Starts and permits are separate indicators; a permit increase does not by itself confirm that construction will begin.
Watch Upcoming Starts and Permits
The next monthly HUD and Census Bureau housing report will show whether starts and permits continued to weaken or rebounded after September. Readers should compare later figures with both the previous month and the same month a year earlier, while checking for revisions to the September estimates.
NAHB officials say financing conditions, mortgage rates, construction costs and regulatory barriers will shape builders’ near-term activity. Their comments offer the association’s outlook, but the supplied report does not identify a specific date for a policy change or a forecast update.
Key Questions
How many single-family housing starts were reported for September?
The reported pace was 859,000 units at a seasonally adjusted annual rate, down 4.6% from the prior month. This is an annualized estimate, not the number of homes started during September.
How did total housing starts change?
Total housing starts declined 5.2% to a seasonally adjusted annual rate of 1.22 million units, according to HUD and the Census Bureau.
Were multifamily starts also down?
Yes. Multifamily starts fell 6.7% to an annualized rate of 362,000. The source report says that was 24.9% below the rate in September 2025.
What reasons did builders give for the decline?
NAHB officials cited high mortgage and borrowing costs, affordability challenges, rising construction costs and labor shortages. The government figures do not quantify the contribution of each factor.
Does the September decline mean home prices will rise?
The report does not establish a direct effect on home prices. Starts measure the pace of new construction, and a single monthly decline cannot show how prices will move or whether the trend will continue.
Source: rss
