In September, the number of single-family housing starts decreased due to the persistent labor shortages, increased financing, and the cost of building materials.
The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau report that overall housing starts decreased 5.2% in September to a seasonally adjusted annual rate of 1.22 million units.
This tempo is indicative of the number of housing units that builders would construct over the next 12 months if September’s activity were to persist.
The seasonally adjusted annual rate of single-family starts decreased by 4.6% to 859,000, the lowest level in a year.
This figure is included in the total. Nevertheless, there was a 2.6% increase in single-family starts compared to September 2025.
Single-family starts have experienced a 4.0% decline year-to-date, which is indicative of the ongoing obstacles that home builders are encountering.
Considering the recent volatility, the three-month moving average offers a more lucid indication, as it has decreased to 878,000 units.
From August to September, the annualized pace of multifamily starts, which encompasses apartment buildings and condominiums, decreased by 6.7% to 362,000.
The three-month moving average for multifamily construction has decreased to 415,000 units, and activity is 24.9% lower than it was a year ago.
On a year-to-date basis, the Northeast experienced an 8.3% increase in combined single-family and multifamily starts, while the South experienced a 0.3% decrease, the Midwest experienced a 2.0% decrease, and the West experienced a 6.3% decrease.
The enduring challenges posed by elevated construction costs and persistent housing affordability pressures are reflected in the decline of single-family starts in all four regions.
In September, the total number of housing units under construction was 1.28 million, a 3.3% decrease from the previous year.
The number of single-family residences under construction decreased by 2.8% year over year to 587,000 units.
The number of multifamily units under construction has decreased to 693,000 units, a decrease from the apex of over one million units in December 2023 and a 3.6% decrease from a year ago.
The annualized rate of single-family completions decreased by 11.0% from the previous year, to approximately 840,000 units.
The pace of multifamily completions for buildings with five or more units decreased by 20.4% year over year, resulting in a 339,000-unit pace.
Total completions in both sectors decreased by 12.5% year-to-date.
In September, the annualized rate of permits decreased by 0.2%, resulting in a total of 1.4 million units.
The rate of single-family permits decreased by 4.0% to 845,000 units, which is a 4.8% decrease from September 2025.
Multifamily permits have increased by 6.1% to an annualized 555,000 pace, but they are down by 0.2% from the previous year.
Total permits were 10.6% higher in the Northeast, 2.2% higher in the Midwest, and 3.2% lower in the South when regional permit data was analyzed on a year-to-date basis.
Permit activity in the Western region remained constant.
The Midwest was the sole region to experience a 1.2% increase in single-family permits, which is indicative of the relative strength of the residential construction market in that region.
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