US Housing Starts Fall 5.2% As Permits Slip: Is Housing Stalling?

The housing trends remain flat to down: starts, permits, completions, and sales.

September 2026 New Residential Construction

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

Housing Starts

Privately-owned housing starts in September were at a seasonally adjusted annual rate of 1,221,000.
This is 5.2 percent (±11.8 percent) below the revised August estimate of 1,288,000 and is 7.4 percent (±11.5 percent) below the September 2025 rate of 1,319,000.
Single-family housing starts in September were at a rate of 859,000; this is 4.6 percent (±10.0 percent) below the revised August figure of 900,000. The September rate for units in buildings with five units or more was 349,000.

Building Permits

Privately-owned housing units authorized by building permits in September were at a seasonally adjusted annual rate of 1,400,000.
This is 0.2 percent below the revised August rate of 1,403,000 and is 3.0 percent below the September 2025 rate of 1,444,000.
Single-family authorizations in September were at a rate of 845,000; this is 4.0 percent below the revised August figure of 880,000. Authorizations of units in buildings with five units or more were at a rate of 503,000 in September.

Housing Completions

Privately-owned housing completions in September were at a seasonally adjusted annual rate of 1,192,000.
This is 2.2 percent (±10.8 percent) above the revised August estimate of 1,166,000, but is 14.0 percent (±11.1 percent) below the September 2025 rate of 1,386,000.
Single-family housing completions in September were at a rate of 840,000; this is 2.4 percent (±10.8 percent)below the revised August rate of 861,000. The September rate for units in buildings with five units or more was 339,000.

Note the margins of error on single-family housing starts ±11.5 percent.

Single Family vs Multi-Family

Single Family vs Multi-Family Details SA in Thousands

Total: 1,221
Single Family: 859
Multi-Family: 362

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 meander to nowhere.

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 a big drop in the price of rent.

Neither happened.

Prices vary greatly by region with declines in areas hugely overbuilt. However home prices are still rising nationally and the widely-expected decline in rent never happened either.

Housing Units Under Construction

Units Under Construction Details

Total: 1,280
Multi-Family: 693
Single-Family: 587

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