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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 data cited by the National Association of Home Builders. Total housing starts dropped 5.2% to 1.22 million; builders and NAHB representatives cited borrowing costs, affordability challenges and construction costs as pressures, while the causes of the monthly changes were not quantified in the report.
U.S. single-family housing starts fell 4.6% in September to a seasonally adjusted annual rate of 859,000, as total housing starts declined 5.2% to 1.22 million, according to figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau cited by the National Association of Home Builders. The decline matters to home buyers and the construction industry because starts indicate the pace of new residential building, though the monthly data alone do not establish what caused the change.
The overall September rate of 1.22 million housing units is an annualized measure: it represents how many units builders would begin over 12 months if construction continued at that month’s pace. Single-family starts were at an annualized 859,000. The source reports that figure was 2.6% higher than in September 2025, even as it fell from the previous month.
Multifamily starts, including apartments and condominiums, declined 6.7% month over month to an annualized 362,000. The report says that pace was 24.9% lower than in September 2025. The year-over-year figures and monthly changes describe different comparisons and should not be conflated.
Permits, which indicate planned construction rather than work already started, also shifted. Total permits slipped 0.2% to an annualized 1.40 million; single-family permits fell 4% to 845,000, while multifamily permits rose 6.1% to 555,000. The source says single-family permits were down 4.8% from September 2025 and multifamily permits were down 0.2%.
Fewer Starts, Lower Near-Term Supply
A decline in starts means builders began fewer homes during the month than in August, if measured on a seasonally adjusted annualized basis. If weaker construction continues, it could limit the flow of newly built homes and apartments into a market already facing affordability concerns. One month’s figures, however, do not establish a lasting trend or show how many homes will ultimately be completed.
The distinction between starts and permits matters for readers tracking supply. A permit authorizes or records planned work, while a start reflects construction beginning; neither metric is the same as a completed home becoming available for sale or rent. September’s single-family permit decline alongside lower starts may be relevant to future building, but the figures do not show how many permitted projects will proceed.
Builders’ costs and financing conditions also affect businesses connected to residential construction, including contractors and suppliers. The NAHB attributed pressure on building activity to high mortgage rates, affordability challenges and rising construction costs. Those are the association’s explanations, not causal findings established by the monthly figures themselves.
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Starts and Permits Tell Different Stories
The figures were reported by the U.S. Department of Housing and Urban Development and the Census Bureau, with the NAHB providing commentary. Seasonally adjusted annual rates are a way to express a single month’s pace on a 12-month basis; they are not a count of homes actually started over a full year.
The report gives regional comparisons for combined single-family and multifamily starts on a year-to-date basis: starts were 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, year-to-date totals were 10.6% higher in the Northeast, 2.2% higher in the Midwest and 3.2% lower in the South, with no change in the West. These regional figures cover both housing types and are not September-only comparisons.
““A sustained increase in home building is key to long-term affordability, but near-term construction depends on mortgage rates, financing conditions and efforts to ease regulatory barriers.””
— Bill Owens
Causes and Future Building Remain Unclear
The report provides monthly and year-over-year changes but does not quantify how much of September’s decline was due to mortgage rates, material costs, labor availability or other factors. The NAHB cited financing, affordability and construction costs; its account should be treated as industry commentary rather than a causal breakdown in the data.
It is also unclear from the supplied material whether the September movement will persist, how many permitted projects will become starts, or how many starts will result in completed homes. The reported annualized rates are not forecasts. The source gives an NAHB outlook for lower production in 2026 and further declines in 2027, but it does not provide the assumptions or numerical estimates behind that forecast.
Watch Upcoming Starts and Permit Data
The next useful comparison will be subsequent federal housing data, which can show whether September’s declines continue or reverse. Readers can track both starts and permits: starts record construction beginning, while permits offer a separate indication of planned building activity.
Mortgage rates, financing conditions and construction costs are among the factors Owens identified as relevant to near-term building. The source does not specify when the next report will be released, so no release date is stated here. Future figures will also clarify whether the September changes develop into a broader pattern across housing types and regions.
Key Questions
How much did single-family housing starts fall in September?
They fell 4.6% from the previous month to a seasonally adjusted annual rate of 859,000, according to the figures cited by the NAHB.
What does an annualized rate of 859,000 mean?
It is the number of units that would be started over 12 months if construction continued at September’s seasonally adjusted pace. It is not a count of 859,000 homes begun during September.
Did all types of housing starts decline?
Yes. Single-family starts fell 4.6% to an annualized 859,000, while multifamily starts fell 6.7% to 362,000. Together, total starts declined 5.2% to 1.22 million.
What reasons did builders give for the decline?
NAHB representatives cited high mortgage rates, affordability challenges, construction costs and financing conditions. The supplied data do not quantify how much each factor contributed to September’s change.
Were permits down too?
Total permits decreased 0.2% to a seasonally adjusted annual rate of 1.40 million. Single-family permits fell 4%, while multifamily permits rose 6.1% from August.
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