US building permits decreased 3% month-over-month in June 2026 to a seasonally adjusted annual rate of 1.367 million, falling short of market expectations of 1.40 million, according to preliminary data. Elevated mortgage rates and a growing inventory of unsold new homes likely weighed on permitting activity.
By category, permits for buildings with five or more units declined 4.9% to 445,000, while single-family permits fell 2.4% to 871,000.
Regionally, permits dropped in the South (down 7.2% to 707,000) and the West (down 6.2% to 302,000), but increased in the Northeast (up 15.8% to 154,000) and the Midwest (up 5.7% to 204,000).
