Seasonally Adjusted Rate of Permits Reaches A Near 5-Year Low

[ST. PAUL, MINN.] The seasonally adjusted annual rate of housing units authorized in the United States fell 3.7 percent in August, according to the U.S. Census Bureau’s monthly housing report released this morning. The rate of new privately owned permits was 1.31 million, down from July’s revised figure of 1.36 million and 11.1 percent below August 2024. Single-family permits decreased 2.2 percent while multi-family authorizations held at 403,000.

Year-over-year, total permits are down 11.1%, with single-family permits down 11.5% YoY and multi-family permits down 14.7% YoY.

“Today’s release highlights the critical role mortgage rates play in unlocking housing demand,” said Nick Erickson, executive director of Housing Affordability Institute. “The Federal Reserve’s action on rates today will help more families enter the market.”

“At the same time, we need state-level reforms that focus squarely on supply,” added Erickson. “Removing barriers that drive up costs and delay production is the only way to close our persistent housing gap and restore affordability.”

MONTHLY ACTIVITY

Building Permits

In August, permits were issued for privately-owned housing units at a seasonally adjusted annual pace of 1.31 million. This reflects a 3.7% decline from July’s revised total of 1.36 million and an 11.1% drop compared to August 2024, when the rate stood at 1.48 million. Single-family permits were issued at a rate of 856,000, down 2.2% from July’s revised figure of 875,000. Permits for multifamily projects with five units or more came in at 403,000.

Housing Starts

Housing starts for privately-owned units were reported at an annualized rate of 1.31 million in August. That represents an 8.5% decrease from July’s revised level of 1.43 million and a 6.0% decline compared to the same month last year, when the rate was 1.39 million. Single-family starts were 890,000 in August, 7.0% lower than the revised July pace of 957,000. Multifamily starts for structures with five or more units were also recorded at 403,000.

Housing Completions

Completed housing units in August reached an annualized rate of 1.61 million, up 8.4% from July’s revised estimate of 1.48 million. However, completions were still 8.4% lower than August 2024, when the rate was 1.76 million. Single-family completions totaled 1.09 million, a 6.7% increase from July’s revised figure of 1.02 million. For multifamily units with five or more apartments, completions were reported at 503,000.

Source: United States Census Bureau’s Building Permit Survey