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U.S. single-family housing starts fell 4.6% in September to a seasonally adjusted annual rate of 859,000, according to HUD and the Census Bureau. Total housing starts declined 5.2% to 1.22 million, while builders cited borrowing costs, affordability pressures and construction expenses as constraints.
U.S. single-family housing starts fell 4.6% in September to a seasonally adjusted annual rate of 859,000, while total housing starts declined 5.2% to 1.22 million, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The figures point to a slower pace of new residential construction amid financing, affordability and building-cost pressures cited by the National Association of Home Builders.
The overall September rate of 1.22 million housing units is an annualized measure: it estimates how many units builders would start over a year if construction continued at the same pace. It is not a count of homes begun during September alone. The federal report showed starts declined across both major housing categories.
Single-family starts reached an annualized rate of 859,000, down 4.6% from the prior month but 2.6% higher than in September 2025. Multifamily starts, including apartments and condominiums, fell 6.7% to an annualized 362,000. That pace was 24.9% below September 2025, according to the figures in the source report.
Permits, a measure of proposed construction rather than homes already started, also weakened in the single-family segment. Total permits slipped 0.2% to a 1.40 million annual rate. Single-family permits fell 4% to 845,000, down 4.8% from a year earlier, while multifamily permits rose 6.1% to 555,000 but remained 0.2% below September 2025.
Fewer Starts Amid Cost Pressures
Housing starts matter because they indicate the pace at which builders are adding new homes, though a monthly decline does not by itself establish a lasting trend. A slower construction rate can limit the flow of new homes and apartments available to buyers and renters if it persists. The September figures therefore offer a snapshot of supply activity, not a direct measure of current home prices or rents.
The National Association of Home Builders linked the slowdown to high mortgage rates, affordability challenges and rising construction costs. Those factors can affect whether projects are financially viable and whether prospective buyers can afford newly built homes. The group’s statements are industry assessments; the federal data report construction activity but do not establish which factors caused the month-to-month decline.
For builders and suppliers, the lower starts and single-family permit totals may signal fewer projects entering the pipeline. The effects on employment, sales, prices and housing availability are not specified in the reported figures and would depend on whether the slowdown continues and how demand and costs change.
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Starts and Permits Measure Different Stages
Housing starts and building permits track different points in the construction process. A start is recorded when construction begins, while a permit generally represents authorization for planned work. Permits can provide an indication of possible future building, but not every permit necessarily becomes a completed home.
The report’s regional figures cover combined single-family and multifamily starts on a year-to-date basis. Starts were 8.3% higher in the Northeast than in the comparable period, 2% lower in the Midwest, 0.3% lower in the South and 6.3% lower in the West. These regional comparisons are not September-only changes and should not be read as single-family figures alone.
Year-to-date permit comparisons also varied by region: permits were 10.6% higher in the Northeast and 2.2% higher in the Midwest, while they were 3.2% lower in the South. The West showed no change. The source does not provide the underlying unit totals for those regional comparisons.
““A sustained increase in home building is key to long-term affordability, but near-term construction depends on mortgage rates, financing conditions and efforts to ease regulatory barriers.””
— Bill Owens
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One Month Does Not Set the Trend
The source material does not give the report’s release date, the prior-month unit totals, or revisions to earlier estimates. It also does not establish how much of September’s decline resulted from mortgage rates, material costs, labor availability or other conditions. The NAHB’s explanations and production outlook are attributed views, not confirmed causes or guaranteed outcomes.
The figures are seasonally adjusted annual rates, so they should not be interpreted as the number of homes physically started in September. It is also unclear from the supplied material whether the September data will be revised, how construction activity changed after that month, or whether the forecast declines for 2026 and 2027 will occur.
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Watch Permits and Future Starts
Subsequent monthly releases from HUD and the Census Bureau will show whether single-family and total starts recover, remain near September levels or decline further. Readers can also compare future permit data with starts to see whether planned construction is moving into the building stage. Any later revisions to September’s estimates could alter the reported month-to-month comparison.
The NAHB said it expects lower production in 2026 and further declines in 2027, citing its assessment of rates and material costs. That outlook should be treated as a forecast. The supplied report does not specify a date for the next release or provide new measures of mortgage rates, construction costs or labor conditions.
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Key Questions
How far did single-family housing starts fall in September?
They declined 4.6% from the prior month to a seasonally adjusted annual rate of 859,000, according to the figures reported by HUD and the Census Bureau.
What does an annualized rate of 859,000 mean?
It estimates how many homes builders would start over 12 months if the September pace continued. It is not the count of single-family homes started during September.
Did all housing construction categories decline?
Starts fell in September for both single-family homes and multifamily buildings. Multifamily starts declined 6.7% to an annualized 362,000, while multifamily permits increased 6.1% to an annualized 555,000.
What reasons did builders give for the decline?
NAHB representatives cited mortgage rates, affordability challenges, financing conditions and construction costs. The federal figures show the change in starts but do not prove those factors caused it.
Does the September decline confirm that construction will keep falling?
No. It is one month of data. NAHB forecast lower production in 2026 and further declines in 2027, but that is the association’s outlook, not a confirmed future result.
Source: rss
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