Housing Starts Fell 5.2% in September to 1.22 Million

Housing starts dropped 5.2% in September to a seasonally adjusted annual rate of 1,221,000, the U.S. Census Bureau reported on October 20, 2026. The figure sits 7.4% below the September 2025 rate of 1,319,000, deepening a slide that now spans nearly every measure of new construction.

Single-family starts fell to 859,000, down 4.6% from the revised August figure of 900,000. Starts for units in buildings with five units or more came in at 349,000. The multifamily number, in other words, is doing little to offset the single-family retreat.

What do the permit numbers signal?

Permits, a forward indicator of construction activity, didn't offer much relief. Privately-owned housing units authorized by building permits in September ran at 1,400,000 — a marginal 0.2% dip from the revised August rate of 1,403,000, but 3.0% below the September 2025 rate of 1,444,000.

Single-family authorizations took the harder hit. They landed at 845,000, down 4.0% from the revised August figure of 880,000. Authorizations for buildings with five units or more held stronger at 503,000, suggesting the multifamily pipeline remains the more resilient segment.

Are completions the one bright spot?

Barely. Completions rose 2.2% from August to a seasonally adjusted annual rate of 1,192,000 — but that's still 14.0% below the September 2025 rate of 1,386,000, the steepest year-over-year decline in the dataset.

Single-family completions slipped to 840,000, down 2.4% from the revised August rate of 861,000. Completions of units in buildings with five units or more reached 339,000.

The month's gains, then, are month-over-month only. Measured against last year, the delivery of finished homes is contracting faster than any other category.

What does this change for the housing market?

The practical question for builders, buyers and policymakers is whether September marks a pause or a trend. With starts down 7.4% year over year, permits down 3.0% and completions down 14.0%, every forward and backward-looking gauge in the Census Bureau's release now points the same direction: less new housing is moving from drawing board to delivery. The October permits and starts figures, due next month, will show whether the slide continues into the final quarter of 2026.