US Housing Starts Drop More than Expected

Housing starts in the US dropped by 12.4% from the previous month to a seasonally adjusted annualized rate of 1.239 units in July of 2026. The result was firmly below market expectations of a softer drop to 1.35 million units, not far from the six-year low of 1.182 million from two months prior. Starts sank by 15.6% in multi-unit houses, while they dropped by 9.9% in single-unit housing. Among different geographical locations, units sank in the Midwest, (27.6% to 173 thousand), South (-12.6% to 645 thousand), and West (-13.8% to 149 thousand). In turn, starts were higher in the Northeast (17.1% to 164 thousand).

Housing starts in the US jumped 19% to a seasonally adjusted annualized rate of 1427 thousand units in June 2026, the highest in three months, compared to forecasts of 1310 thousand. It follows a revised 15.4% jump in May that sent housing starts to a six-year low. Multi-family starts soared 76.3% to 513 thousand, following a 41% plunge in the previous month. Meanwhile, single-family starts edged down 0.2% to 895 thousand, a third consecutive month of falls, as high prices and mortgage rates are weighing on demand. Starts soared in all four main regions: the South (15.2% to 741 thousand), the Midwest (33.3% to 248 thousand, the highest since 2024), the Northeast (10.3% to 129 thousand) and the West (22.1% to 309 thousand).

US housing starts fell 15.4% month-on-month in May 2026, reaching a seasonally adjusted annual rate of 1.177 million, the lowest since May 2020. This follows a downwardly revised 1.392 million in April and fell short of market forecasts of 1.43 million. The data indicates that high mortgage rates are curbing builder activity, with contractors adopting a cautious approach as they reduce the inventory of new homes for sale due to sluggish demand. To attract buyers, many have lowered prices, provided mortgage rate subsidies, and slowed the construction of spec homes, which are properties built without a signed contract. Multi-family starts plunged 41.6% to 284,000, the lowest since November 2024, while single-family starts slipped 1.9% to an eight-month low of 882,000. Regionally, construction activity declined sharply in the South (down 17.0% to 594,000), the West (down 17.2% to 264,000), and the Northeast (down 26.8% to 123,000), while the Midwest saw a 3.7% increase to 196,000.