Single-family housing starts dropped 4.6% in September to a seasonally adjusted annual rate of 859,000 units as builders contended with high financing and material costs and continued labor shortages, according to the National Association of Home Builders' analysis of U.S. Census Bureau and Department of Housing and Urban Development data. Single-family starts remained 2.6% above September 2025 levels.
“Declining housing starts reflect the high borrowing costs and affordability challenges builders face, consistent with our recent builder surveys,” said Danushka Nanayakkara-Skillington, NAHB's assistant vice president for forecasting and analysis. “September's single-family starts data align with our forecast of lower production in 2026, with further declines expected in 2027 as rates stay elevated and material costs rise.”
Single-family permits, a leading indicator of future construction, decreased 4% to an 845,000-unit rate and are down 4.8% year over year.
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