United States, September 18, 2025
News Summary
Housing starts in the US have plummeted to 1.31 million, reflecting an 8.5% drop from July and a 6% annual decrease. The decline is predominantly driven by a decrease in single-family units, with permits also falling. Despite a drop in mortgage rates to 6.35%, economic uncertainty continues to hinder market recovery. Additionally, the job market is struggling, with fewer jobs added than expected and an increasing number of unsold homes. The overall outlook for the housing market remains bleak.
Housing Starts Face Significant Decline Amid Economic Concerns
In August, housing starts plummeted to a seasonally adjusted annual rate of 1.31 million, marking an 8.5% decline from July’s rate of 1.43 million. Compared year-over-year, this number also reflects a 6% decrease from 1.39 million in August 2024.
The drop in activity doesn’t stop with starts; building permits also saw a decrease, falling to 1.31 million in August, down from 1.36 million in July—a 3.7% decrease—and 1.48 million in August last year, which represents an 11.1% decrease.
Breaking the figures down further, single-family housing starts experienced a 7.0% month-over-month decline, landing at a rate of 890,000 units. Additionally, permits for future single-family construction decreased by 2.2%, now totaling 856,000 units.
Including multi-family units, the broader housing starts figure also fell by 8.5% from July, reaching an annual rate of 1.307 million. This statistic fell short of consensus estimates and signifies a 6.0% decline year-over-year.
Mortgage Rates and Economic Influence
As economic challenges mount, the 30-year fixed mortgage rate has recently dipped to 6.35%, the lowest level in nearly a year. This figure represents a notable decrease from rates exceeding 7% in January. Despite the lower mortgage rates, the housing market remains stagnant due to ongoing economic uncertainty.
In response to these challenges, the Federal Reserve is considering a cut in rates of 25 basis points to stimulate job growth, following a previous pause aimed at tackling inflation. However, analysts caution that simply lowering interest rates may not sufficiently address the persistent issues of slow job growth and rising unemployment.
Market Inventory and Job Market Trends
Recent statistics indicate a growing accumulation of unsold homes, with homes now averaging 27 days on the market—about a week longer than the previous year. Moreover, new home listings have dropped by 7.3% from July, marking the lowest level since records began to be tracked by Zillow.
In July, the number of homes removed from the market increased by 57% compared to the prior year. Notably, more homes exited the market unsold than were newly listed for the first time in years, especially prevalent in the Southern and Western regions of the United States.
The job market itself shows signs of weakening, with only 22,000 jobs added in August, falling significantly short of the expected 76,500. This has resulted in a slight uptick in the unemployment rate, which rose to 4.3% from 4.2%.
Conclusion
The combination of rising unsold inventory, a stagnant job market, and declining housing starts suggest a challenging environment for the housing industry. Economic uncertainty continues to cloud future growth prospects, leaving many to wonder how the market will respond in the coming months.
FAQs
What were the housing starts in August 2024?
Housing starts in August dropped to a seasonally adjusted annual rate of 1.31 million.
How much did housing starts decrease from July 2024?
This marks an 8.5% decrease from July’s rate of 1.43 million.
What was the year-over-year change in housing starts?
Year-over-year, housing starts decreased by 6% from 1.39 million in August 2024.
What was the average 30-year fixed mortgage rate in August 2024?
The average 30-year fixed mortgage rate fell to 6.35%, the lowest in 11 months.
How many jobs were added in August 2024?
Only 22,000 jobs were added in August, falling short of the expected 76,500.
Deeper Dive: News & Info About This Topic
Additional Resources
- Reuters: US Single-Family Housing Starts Near 2.12-Year Lows
- Mortgage Professional America: US Housing Starts and Permits Tumble
- Capital Brief: US Housing Starts and Building Permits Drop
- Bloomberg: US Housing Starts Fall to Lowest Since May
- Seeking Alpha: Housing Starts and Building Permits Weaken
- Wikipedia: Housing in the United States
- Google Search: US Housing Market
- Google Scholar: Housing Market Trends 2025
- Encyclopedia Britannica: Real Estate
- Google News: US Housing Market 2025
Author: Construction NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
