July Housing Starts Drop

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Privately-owned housing starts in July were at a seasonally adjusted annual rate of 1,239,000, 12.4% below the revised June estimate of 1,415,000, the U.S. Census Bureau reported.

That’s also 13.5% below July 2025’s 1,432,000.  

Single-family starts were at 808,000, 9.9% below the revised June figure of 897,000. The July rate for units in buildings with five or more units was 421,000.

Completions were at a seasonally adjusted annual rate of 1,212,000, up 9.1% from the revised June estimate of 1,333,000 and down 16.8% year-over-year.

Single-family completions were 878,000, 5.8% below the revised rate of 932,000. The July rate for units in buildings with five or more was 329,000.

Privately-owned units were authorized by permit at a seasonally adjusted annual rate of 1,443,000, up 5% from the June rate of 1,374,000, and 3.1% above the July 2025 rate of 1,400,000.

For single-family properties, authorizations were at a rate of 894,000, up 2.5% from the revised June report of 872,000. Authorizations for units in buildings with five or more units was 490,000.

“Housing starts fell sharply in July, dropping 12.4% to a seasonally adjusted annual rate of 1.239 million, well below the 1.35 million consensus forecast. Single-family starts fell to their lowest level since November 2022. The pullback impacted both single-family and multifamily construction after June’s rebound. For single-family builders in particular, the July decline adds to a stretch of fairly weak construction activity as elevated mortgage rates and affordability pressures continue to keep many prospective buyers on the sidelines,” said First American Chief Economist Odeta Kushi.

“There was a silver lining in the permits data. Overall permits rose 5% to 1.443 million, beating expectations, while single-family permits increased from both a month and a year ago,” she continued. “Permits tend to lead actual construction, so the July increase suggests builders are still getting projects ready, even if they are more selective about when to break ground. One month of stronger permits does not change the bigger picture, though. Months’ supply of new homes remains elevated, and permit growth has generally slowed as inventory has built. With plenty of new homes already available relative to the current pace of sales, builders have little reason to push production much higher until that inventory comes down or demand improves.”