Single-family housing starts declined in September as builders faced higher financing, building material costs, and ongoing labor shortages.
Overall housing starts decreased 5.2% in September to a seasonally adjusted annual rate of 1.22 million units, according to a report from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau. This pace reflects the number of housing units builders would begin over the next 12 months if September’s activity were sustained.
Within the total, single-family starts decreased 4.6% to an 859,000 seasonally adjusted annual rate, the lowest level in a year. However, single-family starts were up 2.6% compared to September 2025. On a year-to-date basis, single-family starts are down 4.0%, reflecting continued challenges facing home builders. Given recent volatility, the three-month moving average provides a clearer signal, falling to 878,000 units.
Multifamily starts, which include apartment buildings and condominiums, decreased 6.7% from August to September to an annualized 362,000 pace. The three-month moving average for multifamily construction has trended lower to 415,000 units, and activity is 24.9% lower compared to year-earlier levels.
Regionally, on a year-to-date basis, combined single-family and multifamily starts were 8.3% higher in the Northeast, 0.3% lower in the South, 2.0% lower in the Midwest, and 6.3% lower in the West. Single-family starts declined across all four regions, reflecting ongoing challenges amid elevated construction costs and persistent housing affordability pressures.
The total number of housing units under construction stood at 1.28 million in September, down 3.3% from a year earlier. Single-family homes under construction stood at 587,000 units, a 2.8% year-over-year decline. Multifamily units under construction slowed to 693,000 units, down from peaks above 1 million units in December 2023 and 3.6% lower than a year ago.
Single-family completions slowed to an annualized rate of about 840,000 units, down 11.0% from a year earlier. Multifamily completions for buildings with five or more units declined 20.4% year over year to a 339,000-unit pace. On a year-to-date basis, total completions across both sectors was down 12.5%.
Looking ahead, overall permits edged down 0.2% in September to an annualized rate of 1.4 million units. Single-family permits declined 4.0% to an 845,000-unit rate and are down 4.8% compared to September 2025. Multifamily permits increased 6.1% to an annualized 555,000 pace but are down 0.2% from a year earlier. Looking at regional permit data on a year-to-date basis, total permits were 10.6% higher in the Northeast, 2.2% higher in the Midwest, but 3.2% lower in the South. Permit activity in the West was unchanged. For single-family permits, the Midwest was the only region to post an increase, rising 1.2%, reflecting relative strength in that region’s residential construction market.