Housing Starts Slow in July
Originally Published by: HBS Dealer — August 18, 2026
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The U.S. Census Bureau and the U.S. Department of Housing and Urban Development released new residential construction stats for July 2026, with the data showing a pressurized environment for 
builders.
Overall privately-owned housing starts in July were at a seasonally adjusted annual rate of 1,239,000. That figure is 12.4 percent below the revised June estimate of 1,415,000 and 13.5 percent below the July 2025 rate of 1,432,000.
Single-family housing starts in July came in at a rate of 808,000—9.9 percent under the revised June figure of 897,000.
“Builders continue to face significant challenges from elevated construction costs and affordability pressures,” said Bill Owens, chairman of the NAHB. “Higher mortgage rates are keeping many prospective buyers on the sidelines, while rising material, gas and diesel costs are adding to the cost of construction. These challenges are making it increasingly difficult for builders to deliver homes at prices that buyers can afford.”
The multifamily sector, which includes apartment buildings and condos, decreased 15.6% to an annualized 421,000 pace and are down 7.1% compared to July 2025.
“The July decline in housing starts reflects broader weakness in the housing market,” said Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis. “Builders remain cautious as elevated mortgage rates, rising construction costs and economic uncertainty continue to limit demand. The drop in single-family construction is especially concerning given the persistent housing shortage in many markets. Looking ahead, permits are trending positively for both single-family and multifamily construction.”
Permits were 14.3% higher in the Northeast, 2.6% higher in the Midwest, 4.7% lower in the South and 2.1% higher in the West.
Regionally, July's bright spot was the Northeast, which saw overall starts lift by 17.1% month-over-month and 62.4% year-over-year. The only other region to register an increase was in the West, which saw a year-over-year lift of 5.3% in overall starts.
Single-family starts dipped in every region (both monthly and yearly).