New single-family home construction is slowing across the United States, although the latest figures show differences between regions and housing types.
According to U.S. Census Bureau data released October 20, single-family building permits fell 4% in September to a seasonally adjusted annual rate of 845,000, the lowest level in approximately three and a half years. Permits were down 4.8% from September 2025.
Single-family housing starts also fell 4.6% from August to an annualized rate of 859,000, but remained 2.6% above their year-earlier level. The Census Bureau cautions that the monthly change in starts is not statistically significant given the survey’s margin of error.
Builder confidence fell to 29 in October, its lowest reading since June 2012, according to the National Association of Home Builders. Forty-three percent of builders reported cutting prices, with an average reduction of 6%. NAHB cited mortgage rates above 7%, elevated construction costs and affordability pressures.
Regional Markets Are Moving Differently
Through September, permits across all residential building types were up 10.6% in the Northeast and 2.2% in the Midwest compared with the same period in 2025. The South recorded a 3.2% decline, while the West was unchanged, according to NAHB's construction analysis.
Housing types also diverged. While single-family permits declined, multifamily permitting increased 6.1% in September. Total residential permits slipped just 0.2% to an annualized 1.4 million units.
The federal construction release does not break out new-home permits by price range, making it difficult to say whether luxury construction is following the same pattern as entry-level and middle-market housing.
If the decline in single-family permits continues, it would point to fewer new detached homes entering the construction pipeline. For now, the national decline coexists with stronger activity in some regions and housing segments.