Housing starts dropped by 13.5% on a year-over-year basis in July to a seasonally adjusted annual rate of 1,239,000. The July estimate is also 12.4% lower than the revised June estimate of 1,415,000, according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development.
Single-family starts ticked down 9.9% from the revised June estimate to an adjusted annual rate of 808,000 in July.
Similarly, overall housing completions and single-family completions also ticked down on a month-over-month and year-over-year basis in July. Overall completions ticked down 9.1% compared to June and 16.8% compared to July 2025 to a seasonally adjusted annual rate of 1,212,000. Single-family completions slid 5.8% from revised June estimates to a rate of 878,000 in July.
The data on single-family starts and completions complement recent survey results from the NAHB and Zonda. Zonda’s monthly builder survey indicated July was the worst month of the year for builders, with nearly 80% of respondents saying demand was below expectations. The NAHB/Wells Fargo Housing Market Index was below the break-even reading of 50 for the 16th consecutive month in August, with indices measuring both current sales conditions and prospective buyer traffic particularly low.
While completions and starts fell, U.S. Census data indicates permit activity increased for both the overall housing market and single-family sector. Privately-owned housing units authorized by building permits in July increased 5% on a monthly basis and 3.1% on a year-over-year basis to a rate of 1,443,000 in July. Single-family permit activity increased 2.5% in July to a rate of 1,400,000.
