Housing Starts Decline 2.6 Percent In August, Overall Weakness Continues

The trends in housing all remain down: starts, permits, completions, and sales.

August 2026 New Residential Construction

The monthly New Residential Construction report for august 2026 shows a decline in starts, permits, and completions.

Housing Starts

Privately-owned housing starts in August were at a seasonally adjusted annual rate of 1,275,000.
This is 2.6 percent (±12.0 percent) below the revised July estimate of 1,309,000 and is 1.2 percent (±10.8 percent) below the August 2025 rate of 1,291,000.
Single-family housing starts in August were at a rate of 918,000; this is 7.6 percent (±14.0 percent) above the revised July figure of 853,000. The August rate for units in buildings with five units or more was 344,000.

Building Permits

Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,394,000.
This is 2.7 percent below the revised July rate of 1,433,000, but is 3.5 percent above the August 2025 rate of 1,347,000.
Single-family authorizations in August were at a rate of 878,000; this is 1.8 percent below the revised July figure of 894,000. Authorizations of units in buildings with five units or more were at a rate of 467,000 in August.

Housing Completions

Privately-owned housing completions in August were at a seasonally adjusted annual rate of 1,128,000.
This is 11.9 percent (±9.7 percent) below the revised July estimate of 1,280,000 and is 27.1 percent (±8.9 percent) below the August 2025 rate of 1,548,000.
Single-family housing completions in August were at a rate of 816,000; this is 10.4 percent (±9.3 percent) below the revised July rate of 911,000. The August rate for units in buildings with five units or more was 302,000.

Note the margins of error on single-family housing starts ±14.0 percent.

Single Family vs Multi-Family

Single Family vs Multi-Family Details SA in Thousands

Total: 1,275
Single Family: 918
Multi-Family: 357

Housing Permits

The Covid permit rebound was sharp, in two phases, culminating at 1.923 million in January 2021.

That was followed by a slump to 1.398 million permits in December of 2022.

Since February of 2023, it’s been a slow grind lower.

You cannot start what isn’t permitted.

Housing Completions

The wave of completions surged 1.7 million units in August of 2024.

Conventional wisdom was the surge in completions would lead to falling home prices and falling rent.

Neither happened.

In isolation, rising completions should pressure rent prices and falling completions support prices.

Deportations and trends toward moving back home with parents make things difficult to project.

Housing Units Under Construction

Units Under Construction Details

Total: 1,271
Multi-Family: 682
Single-Family: 589

Despite the big decline, there is still a large number of units under construction. But who can afford to buy?

On the surface, this will put price pressure on units as they complete. But many of these are pre-sold, I believe to buyers who will regret buying.

And people have been predicting a huge price collapse in homes and rents on the basis of completed supply. Neither happened despite the surge in completed homes.

Mortgage Rates