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.
US Housing Starts Drop Amid Economic Challenges
The latest figures show that housing starts in August plummeted to a seasonally adjusted annual rate of 1.31 million. This represents an 8.5% decline from July’s rate of 1.43 million and marks a 6% decrease year-over-year from 1.39 million in August 2024. The decline in housing starts is accompanied by a similar drop in building permits, which also fell to 1.31 million, down 3.7% from July and 11.1% from August last year.
Single-Family Units See Significant Decline
Looking specifically at single-family housing, starts decreased by 7.0% month-over-month, bringing the total to 890,000 units. Permits for future single-family construction also saw a slight drop of 2.2%, totaling 856,000 units. The broader picture indicates that the overall housing starts figure, which includes multi-family units, also declined by 8.5% month-over-month, ending at an annual rate of 1.307 million.
Impact of Mortgage Rates on Housing Market
Interestingly, despite the average 30-year fixed mortgage rate falling to 6.35%—the lowest seen in 11 months and down from over 7% in January—the housing market has not reacted positively. Analysts suggest that the declining mortgage rates have not significantly boosted market activity, primarily due to persistent economic uncertainty.
Future Outlook and Challenges
The Federal Reserve is contemplating a reduction in rates by 25 basis points to stimulate the job market, having previously held off due to inflation concerns. However, experts warn that merely lowering interest rates may not be sufficient to tackle issues like slow job growth and increasing unemployment rates.
Accumulation of Unsold Homes
Current data is also revealing an accumulation of unsold homes, with properties now averaging 27 days on the market—about a week longer than last year. New listings have decreased by 7.3% from July, reaching the lowest level ever tracked by Zillow. In July, a notable 57% more homes were removed from the market compared to the previous year. For the first time in years, the number of homes that exited the market unsold exceeded new listings, particularly in the South and West regions.
Job Market Weakness
The job market appears to be losing momentum, with only 22,000 jobs added in August, falling short of the expected 76,500. Unemployment rose slightly to 4.3% from 4.2%, adding to the overall economic uncertainty affecting the housing market.
Frequently Asked Questions
What are the current housing starts figures for August?
Housing starts in August dropped to a seasonally adjusted annual rate of 1.31 million.
How much did housing starts decrease from July?
This marks an 8.5% decrease from July’s rate of 1.43 million.
What is the year-over-year change in housing starts for August?
Year-over-year, housing starts decreased by 6% from 1.39 million in August 2024.
How did building permits change from July to August?
Building permits also fell to 1.31 million, down from 1.36 million in July (3.7% decrease) and 1.48 million in August last year (11.1% decrease).
What is the trend for single-family housing starts?
Single-family housing starts declined by 7.0% month-over-month to a rate of 890,000 units.
What are the current mortgage rates as of August?
The average 30-year fixed mortgage rate fell to 6.35%, the lowest in 11 months, and down from over 7% in January, according to Freddie Mac.
How is the job market performing currently?
The job market is losing momentum, with only 22,000 jobs added in August, falling short of the expected 76,500. Unemployment rose slightly to 4.3% from 4.2%.
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 TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas 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 Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
