Overall housing starts decreased 8.5% in August to a seasonally adjusted annual rate of 1.31 million units, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Within this overall number, single-family starts decreased 7% to an 890,000 seasonally adjusted annual rate and are down 4.9% on a year-to-date basis, the lowest reading since July of 2024. The multifamily sector, which includes rental and for-sale properties, decreased 11.7% to an annualized 417,000 pace.
“Housing affordability is hurting buyer traffic for builders, and as a result, builders have slowed single-family home construction,” said Buddy Hughes, chairman of the National Association of Home Builders. “Nonetheless, our latest survey shows builders reported an increase for future market expectations as mortgage rates have posted a modest decline in recent weeks.”
Along with construction starts, other multifamily development metrics showed year-over-year declines. Multifamily permits decreased 6.4% to an annualized 456,000 pace in August, while the number of units under construction declined 20% to 706,000 units, due to a slowdown in multifamily construction starts in 2024.
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