Washington, D.C.—Single-family housing starts rebounded in August, but builders continue to face significant market challenges, according to the National Association of Home Builders (NAHB).
Single-family starts increased 7.6% to a seasonally adjusted annual rate of 918,000 units. They were also 5.2% higher than in August 2025.
Overall housing starts fell 2.6% in August to a seasonally adjusted annual rate of 1.28 million units. The U.S. Department of Housing and Urban Development and U.S. Census Bureau reported the figures. The August rate represents the number of homes builders would start if construction continued at that pace for 12 months.
Production remains down 4.7% year to date. Builders continue to contend with rising construction costs, lot and labor shortages and economic uncertainty.
Multifamily starts moved in the opposite direction. The sector, which includes apartment buildings and condos, fell 21.7% to an annualized rate of 357,000 units. Multifamily starts were down 14.6% compared with August 2025.
“Single-family starts unexpectedly increased in August, but higher mortgage rates, rising construction financing costs and affordability challenges continue to weigh on the market and limit momentum for new-home construction,” said Bill Owens, chairman of the NAHB and a home builder and remodeler from Worthington, Ohio.
Permitting data also suggests builders remain cautious as they weigh current market conditions and future demand.
“Year-to-date declines in single-family permits show builders remain cautious about future construction, a trend reflected in our recent builder surveys,” said Jing Fu, NAHB’s senior director of forecasting and analysis. “Ongoing economic uncertainty and affordability challenges will continue to slow single-family construction in the months ahead. However, the Midwest remains a relative bright spot, with single-family permits up 2.9% year-to-date through August.”
Regional activity varies
Combined single-family and multifamily starts increased in two regions on a year-to-date basis.
Starts rose 10% in the Northeast and 0.4% in the Midwest. They fell 2.4% in the South and 3% in the West.
Building permits decline
Overall building permits fell 2.7% in August to an annualized rate of 1.39 million units.
Single-family permits declined 1.8% to an annualized rate of 878,000 units. However, they were 1.3% higher than in August 2025.
Multifamily permits fell 4.3% to an annualized pace of 516,000 units. They remained 7.5% higher than in August 2025.
Regional permit activity was mixed on a year-to-date basis.
Permits increased 12.5% in the Northeast and 2.7% in the Midwest. They fell 3.5% in the South and rose 1.7% in the West.