US housing starts fell 5.2% month-on-month in September 2026 to a seasonally adjusted annual rate of 1.221 million units, marking a third straight monthly decline and the weakest pace since May’s six-year low of 1.182 million. The September figure followed an upwardly revised 1.288 million in August and came in below market expectations of 1.30 million.
The data indicate that elevated mortgage rates continue to restrain construction activity, leading builders to adopt a more cautious stance and pare back new-home inventories in the face of subdued demand. Single-family housing starts declined 4.6% to 859,000, the lowest level in a year, while multi-family starts fell 7.2% to 349,000, a four-month low.
Regionally, starts posted steep declines in the West (-23.2% to 235,000) and the Midwest (-19.0% to 158,000), were flat in the Northeast at 114,000, and increased 6.1% in the South to 714,000.
