Comes As Rates Reach 16-Month High, Fed Rate Hike
[ST. PAUL, MINN.] The pace of permits for new housing continues to experience headwinds, according to the U.S. Census Bureau’s Building Permit Survey data released this morning. In August, the number of units permitted was at a seasonally adjusted annual rate of 1.394 million units, down 2.7 percent from July. The pace of single-family permits fell 1.8 percent month-over-month. Year-to-date, issued single-family permits are down 2.5 percent compared to the same point in time last year.
“Buyers are feeling the pressure and persistently high borrowing costs are pushing homebuilding down,” said Nick Erickson, executive director of Housing Affordability Institute. “While rate buydowns can and do provide some relief in the new home market, they cannot be the only tool on the table. Lawmakers should focus on the policies within their control that can lower the cost of building and expand the supply of homes.”
ACTIVITY: AUGUST 2026
Building Permits
Building permits in August were issued at a seasonally adjusted annual rate of 1,394,000 units, down 2.7 percent from the revised July rate of 1,433,000 but 3.5 percent higher than the August 2025 rate of 1,347,000. Single-family permits fell 1.8 percent from July to an annual rate of 878,000. Permits for buildings with five or more units were issued at a rate of 467,000.
Housing Starts
Housing starts in August were at a seasonally adjusted annual rate of 1,275,000 units, down 2.6 percent from the revised July rate of 1,309,000 and 1.2 percent below the August 2025 rate of 1,291,000. Single-family starts increased 7.6 percent from July to an annual rate of 918,000. Starts for buildings with five or more units were at a rate of 344,000.
Housing Completions
Housing completions in August were at a seasonally adjusted annual rate of 1,128,000 units, down 11.9 percent from the revised July rate of 1,280,000 and 27.1 percent below the August 2025 rate of 1,548,000. Single-family completions declined 10.4 percent from July to an annual rate of 816,000. Completions for buildings with five or more units were at a rate of 302,000.
Source: United States Census Bureau’s Building Permit Survey