Housing Starts Drop in July as Permits Point to Stronger Future Activity

Residential construction pulled back in July as housing starts and completions declined from June levels, while building permits rebounded. The latest Census Bureau data suggests builders remained cautious about active construction, even as the increase in permits pointed to somewhat stronger activity ahead. Privately owned housing starts fell 12.4% to a seasonally adjusted annual rate of 1.239 million , down 13.5% from the July 2025 pace. Single-family starts declined 9.9% to 808k , while starts for buildings containing five units or more fell to 421k . Building permits reversed course as well, increasing 5.0% from June to an annual rate of 1.443 million , and were 3.1% above the July 2025 rate. Single-family authorizations rose 2.5% to 894k , while permits for buildings containing five units or more increased to 490k . The divergence between permits and starts highlights the uneven pace of residential construction. After June's strong rebound in starts, activity pulled back in July, particularly in the single-family sector. At the same time, the increase in permits suggests builders were still authorizing new projects despite the weaker pace of actual construction. Multi-family starts remain in an uptrend, but they tend to lag major changes in single family starts by roughly 6 months.