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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 federal housing data cited by the National Association of Home Builders. Total housing starts declined 5.2% to 1.22 million, while single-family starts remained 2.6% above September 2025.
U.S. single-family housing starts fell 4.6% in September to a seasonally adjusted annual rate of 859,000 units, as total housing starts dropped 5.2% to 1.22 million, according to figures from the U.S. Department of Housing and Urban Development and the Census Bureau reported by the National Association of Home Builders. The decline points to weaker construction activity, though single-family starts were still 2.6% higher than in September 2025.
The reported 1.22 million total starts is an annualized rate: it estimates how many housing units builders would begin over 12 months if September’s pace continued. It is not a count of homes started during the month. Within that total, single-family starts fell to an annualized 859,000 units, while multifamily starts, including apartments and condominiums, declined 6.7% to 362,000.
The year-over-year comparisons differed by housing type. Single-family starts were 2.6% above September 2025, while multifamily starts were 24.9% lower. Overall permits, an indicator of planned construction rather than completed starts, slipped 0.2% to an annualized 1.40 million units. Single-family permits fell 4% to 845,000 and were down 4.8% year over year; multifamily permits rose 6.1% to 555,000, but were 0.2% below September 2025.
NAHB attributed pressure on home building to financing and construction costs, affordability challenges and labor constraints. The association’s chairman, Bill Owens, said high mortgage rates and rising costs were holding back construction. Those explanations are the trade group’s assessment; the supplied report does not quantify how much each factor contributed to September’s decline.
Fewer Starts Tighten New-Home Supply
A decline in housing starts means builders began work on fewer homes at September’s pace, which can affect the flow of newly built housing available in coming months. The figures matter to prospective buyers, renters, builders and businesses supplying construction materials, but they do not by themselves show changes in home prices, rents or completed housing inventory.
The split between single-family and multifamily construction also matters. Single-family starts fell month to month but remained above their year-earlier level, while multifamily starts were sharply lower year over year. That points to different recent trajectories across the two segments, not proof that one factor explains the full change in either market.
Permits provide a separate signal about projects planned for construction. The fall in single-family permits suggests that planned activity in that category also weakened in September, while the rise in multifamily permits indicates a stronger monthly reading for prospective apartment and condominium construction. Permits do not guarantee that projects will begin or be completed.
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Starts and Permits Tell Different Stories
The figures in the source come from a report by HUD and the Census Bureau, as described by NAHB and Hardware Retailing. Housing starts refer to units on which construction began; permits measure authorizations for future construction. Both are reported here as seasonally adjusted annual rates, allowing monthly activity to be expressed at a comparable annual pace.
Regional year-to-date figures in the source combine single-family and multifamily starts. That combined measure was 8.3% higher in the Northeast, 2% lower in the Midwest, 0.3% lower in the South and 6.3% lower in the West. For permits, the year-to-date combined regional measure was 10.6% higher in the Northeast and 2.2% higher in the Midwest, while it was 3.2% lower in the South and unchanged in the West. These regional comparisons are not September-only changes.
NAHB’s comments provide an industry interpretation of the figures. Owens pointed to mortgage rates, affordability and construction costs, while Danushka Nanayakkara-Skillington, the association’s assistant vice president for forecasting and analysis, said the September single-family result fit NAHB’s forecast for lower production in 2026, with further declines projected in 2027. Those are forecasts, not confirmed future outcomes.
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Cost Pressures and Forecasts Remain Unquantified
The supplied report does not provide the exact release date, revised figures for earlier months, or a breakdown showing how mortgage rates, labor shortages, material costs and other factors affected September starts. It also does not say whether the monthly decline was concentrated in particular states or price ranges.
NAHB’s expectation of lower production in 2026 and further declines in 2027 remains an industry forecast. The source does not provide a forecast range or establish how future mortgage rates, building costs, financing conditions or regulatory changes will develop. The September data alone cannot confirm that the projected declines will occur.
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Watch Upcoming Starts and Permit Reports
Future monthly housing reports from HUD and the Census Bureau will show whether starts and permits continue to weaken or recover. Readers should compare later releases with both the previous month and the same month a year earlier, and note any revisions to the September figures.
For the outlook cited by NAHB, mortgage rates, financing conditions, material and labor costs, and regulatory barriers are factors to watch. The supplied source does not identify a specific next release date or confirm any policy change, so the near-term direction of construction remains uncertain.
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Key Questions
How much did single-family housing starts fall in September?
They fell 4.6% from the prior month to a seasonally adjusted annual rate of 859,000 units, according to the figures reported in the source.
What does an annualized rate of 859,000 mean?
It means September’s pace would equal 859,000 housing starts over a year if it continued for 12 months. It is not the number of single-family homes started during September itself.
Did all housing construction categories decline?
Starts fell in both categories reported: single-family starts declined 4.6% to an annualized 859,000, and multifamily starts fell 6.7% to 362,000. Multifamily permits, however, rose 6.1% month to month.
Were single-family starts lower than a year earlier?
No. Despite the monthly decline, single-family starts were 2.6% higher than in September 2025. Multifamily starts were 24.9% lower than a year earlier.
What reasons did builders give for the decline?
NAHB cited high mortgage rates, affordability challenges, rising construction costs and labor pressures. The source does not quantify the contribution of each factor to the September figures.
Source: rss
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