The U.S. Census Bureau and Department of Housing and Urban Development reported that new residential construction weakened in July 2026. Privately owned housing starts fell to a seasonally adjusted annual rate of 1.239 million, down 12.4% from June and 13.5% from July 2025. Single-family starts also declined, falling 9.9% from the previous month.
Building permits provided a more positive signal. Permits rose 5.0% from June to 1.443 million and were 3.1% higher than a year earlier. Single-family permits increased 2.5% from June to 894,000, while permits for buildings with five or more units reached 490,000.
Housing completions also declined, falling 9.1% from June and 16.8% from July 2025 to an annualized rate of 1.212 million. Overall, the July data show a mixed housing market, with building permits strengthening while actual construction starts and completions dropped significantly.
