Privately owned housing starts in September were at a seasonally adjusted annual rate of 1.221 million, notably below market expectations of 1.305 million for the month, according to data from the U.S. Census Bureau. The September data point is -5.2% below the upwardly revised August reading of 1.288 million and is -7.4% below the September 2025 rate of 1.319 million. Housing starts have been on a downward trajectory since peaking in 2022. One unit and multiunit starts declined -4.6% and -6.7% respectively for the month, while permits saw growth of -4% and +6.1% respectively. However, starts in the Southern and largest region increased to 714,000, a growth of 6.1% from August’s reading, but is the only region up for the month.
The ABA Office of the Chief Economist believes the September reading is consistent with a sluggish housing market challenged by affordability concerns, labor shortages, and increasing input costs and suggests residential building activity could remain subdued in the face of elevated mortgage rates. However, the growth of multifamily permitting shows some potential strength for starts in the future.
