US September 2026 housing starts fall for a third month to 1,221k

Home building has slowed for three months in a row

Housing starts count the new homes on which construction began. They show how much new housing is being built. In September, total starts ran at a seasonally adjusted annual rate of 1,221k (thousands of homes). This rate scales the month's pace to a full year and removes normal seasonal swings. Starts were down 5.2% from August's revised 1,288k and 7.4% lower than a year earlier (1,319k). They have dropped from 1,439k in June. Since mid-2020, only May 2026 (1,182k) has been lower. Both main types of building fell:

• Single-family starts: 859k, down from 900k. This is the lowest since September 2025 (837k).
• Starts in buildings with 5+ units: 349k, down from 376k.

Single-family permits point to more weakness ahead

Building permits are official approvals to build. They usually come before starts. Total permits were little changed at 1,400k (August: 1,403k). Single-family permits fell 4% to 845k. That is the lowest since March 2023 (838k) and down from 888k a year ago. Permits for buildings with 5+ units rose to 503k from 475k. The fall in single-family permits suggests that single-family building has not finished slowing. Mortgage rates are above 7%, and homebuilder sentiment is at a 14-year low.

Completions edged up and earlier months were revised up

Completions rose to 1,192k. August was revised up to 1,166k from 1,128k. Total homes under construction (seasonally adjusted) were unchanged at 1,280k. The Census Bureau revised starts and completions for July and August, and permits for August. August starts were first reported at 1,275k. The largest revision raised July starts to 1,369k from 1,309k. Most of that came from buildings with 5+ units (484k from 444k).