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Aug. 2025 U.S. housing starts fell by -8.5 %

Housing Starts U.S. Economic Indicators

Housing starts decreased in Aug. 2025 following the decline in building permits in previous month, following gain in previous period.
In Aug. 2025 U.S. housing starts dropped by -8.5 % on the seasonally adjusted basis to annual rate of 1,307,000 units, a decrease of 122,000 units from 1,429,000 in July. Most of decline took place in the South and it was concentrated in multi-dwelling buildings such as apartments.

New building went down -21.0 % to annual rate of 667,000 units in the South while the construction of multi-family units decreased -11.7 % accounting for 31.91 % of total construction. As demand for renting apartments declines.

A healthier housing market, however, would give a big boost to the economy.

In construction of housing units was bellow average rate of 1,415,821 housing starts.

	*M/M*	*Y/Y*
• Northeast	9.18%	-6.14%
• Midwest	-10.93%	11.68 %
• South	-20.97%	-12.70%
• West	30.42%	9.44 %
• Single-family	-7.00%	-11.00%
• 2 - 4 units	-26.32%	-51.72%
• 5 or more units	-11.04%	21.39 %

Building permits deteriorated by -3.7 % or 50,000 units to an annual rate of 1,307,000 units, from 1,429,000 in July on the seasonally adjusted basis Demand for building permits fell the most in the Midwest and it was concentrated in multi-dwelling buildings such as apartments.

The issuance of new permits declined -9.5 % to annual rate of 220,000 units in the Midwest while the permits for multi-family units decreased -6.4 % accounting for 31.91 % of total building permits issued.

Permits indicate whether demand for new homes is growing or slowing.Building permits dropped by -10.7 % from Aug. 2024

Construction of new homes in U.S. dropped by -4.0 % from Aug. 2024, as housing starts in the South fell the most, by -12.7 %.

Permits By Region

In Northeast housing units were authorized at seasonally adjusted annual rate of 121,000 units, an decrease of 4,000 units, or -3.20 % from 125,000 units July 2025 and an decrease of -16.55 % from 145,000 units Aug. 2024.

In Midwest housing units were authorized at seasonally adjusted annual rate of 200,000 units, an decrease of 21,000 units, or -9.50 % from 221,000 units July 2025 and an decrease of -2.91 % from 206,000 units Aug. 2024.

In West housing units were authorized at seasonally adjusted annual rate of 300,000 units, an increase of 26,000 units, or 9.49 % from 274,000 units July 2025 and an decrease of -1.32 % from 304,000 units Aug. 2024.

In South housing units were authorized at seasonally adjusted annual rate of 691,000 units, an decrease of 51,000 units, or -6.87 % from 742,000 units July 2025 and an decrease of -15.21 % from 815,000 units Aug. 2024.

New Housing Units Authorized (Seasonally adj., at Annual Rate, units), units)	Aug. 2025 prel.	July 2025 prel.	June 2025 prel.	May 2025 prel.	April 2025 prel.
Total	1,312,000	1,362,000	1,393,000	1,393,000	1,412,000
In structures Single-family units	856,000	875,000	866,000	898,000	922,000
In structures with 2 - 4 units	53,000	55,000	50,000	51,000	59,000
In structures with 5 units or more	403,000	432,000	477,000	444,000	431,000
Northeast	121,000	125,000	103,000	124,000	136,000
Midwest	200,000	221,000	218,000	213,000	192,000
South	691,000	742,000	775,000	743,000	754,000
West	300,000	274,000	297,000	313,000	330,000

New Housing Units Authorized (Seasonally adj., at Annual Rate, units), in M / M)	Aug. 2025 prel.	July 2025 prel.	June 2025 prel.	May 2025 prel.	April 2025 prel.
Total	-3.67 %	-2.23 %	0 %	-1.35 %	-4.72 %
In structures Single-family units	-2.17 %	1.04 %	-3.56 %	-2.6 %	-5.73 %
In structures with 2 - 4 units	-3.64 %	10 %	-1.96 %	-13.56 %	0 %
In structures with 5 units or more	-6.71 %	-9.43 %	7.43 %	3.02 %	-3.15 %
Northeast	-3.2 %	21.36 %	-16.94 %	-8.82 %	12.4 %
Midwest	-9.5 %	1.38 %	2.35 %	10.94 %	-12.33 %
South	-6.87 %	-4.26 %	4.31 %	-1.46 %	-9.16 %
West	9.49 %	-7.74 %	-5.11 %	-5.15 %	5.77 %

New Housing Units Authorized (Seasonally adj., at Annual Rate, units), in % Y/Y)	Aug. 2025 prel.	July 2025 prel.	June 2025 prel.	May 2025 prel.	April 2025 prel.
Total	-10.75 %	-2.44 %	-3.67 %	0.51 %	-1.94 %
In structures Single-family units	-11.48 %	-6.72 %	-7.28 %	-5.37 %	-5.53 %
In structures with 2 - 4 units	-7.02 %	10 %	-3.85 %	-7.27 %	5.36 %
In structures with 5 units or more	-9.64 %	5.88 %	3.7 %	16.23 %	5.64 %
Northeast	-16.55 %	-8.09 %	-11.97 %	5.08 %	-11.69 %
Midwest	-2.91 %	22.1 %	4.81 %	18.33 %	14.97 %
South	-15.21 %	-4.38 %	-3.25 %	-3.88 %	-8.83 %
West	-1.32 %	-9.57 %	-7.19 %	-0.63 %	13.01 %

New Housing Units Started (Seasonally adj., at Annual Rate, units)	Aug. 2025 prel.	July 2025 prel.	June 2025 prel.	May 2025 prel.	April 2025 prel.
Total	1,307,000	1,429,000	1,382,000	1,256,000	1,361,000
In structures Single-family units	890,000	957,000	925,000	924,000	927,000
In structures with 2 - 4 units	14,000	19,000	24,000	16,000	14,000
In structures with 5 units or more	403,000	453,000	433,000	316,000	420,000
Northeast	107,000	98,000	173,000	105,000	158,000
Midwest	220,000	247,000	191,000	184,000	198,000
South	667,000	844,000	707,000	693,000	760,000
West	313,000	240,000	311,000	274,000	245,000

New Housing Units Started (Seasonally adj. at Annual Rate, units), in Y / Y)	Aug. 2025 prel.	July 2025 prel.	June 2025 prel.	May 2025 prel.	April 2025 prel.
Total	-8.54 %	3.4 %	10.03 %	-7.71 %	2.79 %
In structures Single-family units	-7 %	3.46 %	0.11 %	-0.32 %	-1.38 %
In structures with 2 - 4 units	-26.32 %	-20.83 %	50 %	14.29 %	7.69 %
In structures with 5 units or more	-11.04 %	4.62 %	37.03 %	-24.76 %	13.21 %
Northeast	9.18 %	-43.35 %	64.76 %	-33.54 %	12.86 %
Midwest	-10.93 %	29.32 %	3.8 %	-7.07 %	-10.81 %
South	-20.97 %	19.38 %	2.02 %	-8.82 %	12.93 %
West	30.42 %	-22.83 %	13.5 %	11.84 %	-15.22 %

New Housing Units Started (Seasonally adj. at Annual Rate, in % Y/Y)	Aug. 2025 prel.	July 2025 prel.	June 2025 prel.	May 2025 prel.	April 2025 prel.
Total	-3.97 %	15.43 %	2.14 %	-1.64 %	0.07 %
In structures Single-family units	-11 %	12.46 %	-5.61 %	-5.91 %	-10.09 %
In structures with 2 - 4 units	-51.72 %	-20.83 %	84.62 %	-5.88 %	100 %
In structures with 5 units or more	21.39 %	24.79 %	20.28 %	13.67 %	30.43 %
Northeast	-6.14 %	-40.24 %	42.98 %	36.36 %	119.44 %
Midwest	11.68 %	44.44 %	-1.55 %	23.49 %	9.39 %
South	-12.7 %	31.88 %	-3.42 %	-5.46 %	-4.88 %
West	9.44 %	-8.75 %	1.63 %	-13.84 %	-20.45 %

New Housing Units Authorized (Not seasonally adjusted, units)	Aug. 2025 prel.	July 2025 prel.	June 2025 prel.	May 2025 prel.	April 2025 prel.
Total	112,200	121,500	128,500	125,000	129,100
In structures Single-family units	72,200	79,000	79,900	84,000	88,300
In structures with 2 - 4 units	4,700	4,800	4,300	4,800	5,400
In structures with 5 units or more	35,300	37,700	44,300	36,200	35,300
Northeast	10,600	10,900	10,100	10,900	10,800
Midwest	18,200	20,000	20,800	20,400	18,100
South	58,600	66,200	70,000	65,300	70,300
West	24,800	24,400	27,600	28,300	29,800

New Housing Units Authorized (Not seasonally adjusted, in Y / Y)	Aug. 2025 prel.	July 2025 prel.	June 2025 prel.	May 2025 prel.	April 2025 prel.
Total	-7.65 %	-5.45 %	2.8 %	-3.18 %	2.87 %
In structures Single-family units	-8.61 %	-1.13 %	-4.88 %	-4.87 %	4 %
In structures with 2 - 4 units	-2.08 %	11.63 %	-10.42 %	-11.11 %	10.2 %
In structures with 5 units or more	-6.37 %	-14.9 %	22.38 %	2.55 %	-1.12 %
Northeast	-2.75 %	7.92 %	-7.34 %	0.93 %	3.85 %
Midwest	-9 %	-3.85 %	1.96 %	12.71 %	5.23 %
South	-11.48 %	-5.43 %	7.2 %	-7.11 %	-0.99 %
West	1.64 %	-11.59 %	-2.47 %	-5.03 %	10.78 %

New Housing Units Authorized (Not seasonally adjusted, in % Y/Y)	Aug. 2025 prel.	July 2025 prel.	June 2025 prel.	May 2025 prel.	April 2025 prel.
Total	-14.94 %	-3.26 %	2.8 %	-4.8 %	-2.64 %
In structures Single-family units	-16.14 %	-7.71 %	-4.08 %	-10.06 %	-5.56 %
In structures with 2 - 4 units	-11.32 %	4.35 %	-2.27 %	-7.69 %	3.85 %
In structures with 5 units or more	-12.84 %	6.8 %	18.77 %	10.7 %	4.44 %
Northeast	-15.87 %	-7.63 %	-14.41 %	0.93 %	-11.48 %
Midwest	-8.08 %	17.65 %	14.29 %	11.48 %	10.37 %
South	-19.28 %	-5.83 %	5.26 %	-10.06 %	-9.29 %
West	-7.81 %	-7.92 %	-3.5 %	-4.07 %	12.88 %

New Housing Units Started (Not seas. adj. at Annual Rate, units)	Aug. 2025 prel.	July 2025 prel.	June 2025 prel.	May 2025 prel.	April 2025 prel.
Total	113,300	129,600	129,100	115,200	123,700
In structures Single-family units	78,400	87,500	88,900	85,300	85,000
In structures with 2 - 4 units	1,200	1,800	2,100	1,500	1,200
In structures with 5 units or more	33,700	40,300	38,100	28,400	37,500
Northeast	9,500	9,400	15,600	9,300	14,300
Midwest	19,500	23,500	19,500	19,400	18,200
South	57,100	74,600	65,400	61,400	67,900
West	27,200	22,100	28,600	25,100	23,300

New Housing Units Started (Not seas. adj. at Annual Rate, in Y / Y)	Aug. 2025 prel.	July 2025 prel.	June 2025 prel.	May 2025 prel.	April 2025 prel.
Total	-12.58 %	0.39 %	12.07 %	-6.87 %	11.74 %
In structures Single-family units	-10.4 %	-1.57 %	4.22 %	0.35 %	6.78 %
In structures with 2 - 4 units	-33.33 %	-14.29 %	40 %	25 %	9.09 %
In structures with 5 units or more	-16.38 %	5.77 %	34.15 %	-24.27 %	25 %
Northeast	1.06 %	-39.74 %	67.74 %	-34.97 %	27.68 %
Midwest	-17.02 %	20.51 %	0.52 %	6.59 %	6.43 %
South	-23.46 %	14.07 %	6.51 %	-9.57 %	16.87 %
West	23.08 %	-22.73 %	13.94 %	7.73 %	-4.12 %

New Housing Units Started (Not seas. adj. at Annual Rate, in % Y/Y)	Aug. 2025 prel.	July 2025 prel.	June 2025 prel.	May 2025 prel.	April 2025 prel.
Total	-5.58 %	14.69 %	2.38 %	-1.45 %	-0.24 %
In structures Single-family units	-12.01 %	9.65 %	-3.68 %	-5.22 %	-10.71 %
In structures with 2 - 4 units	-50 %	-10 %	75 %	0 %	71.43 %
In structures with 5 units or more	18.25 %	29.17 %	16.87 %	11.81 %	33.45 %
Northeast	-7.77 %	-37.33 %	41.82 %	32.86 %	120 %
Midwest	5.98 %	38.24 %	1.04 %	25.97 %	11.66 %
South	-13.35 %	31.57 %	-2.53 %	-6.83 %	-5.43 %
West	6.67 %	-8.68 %	0 %	-12.54 %	-20.75 %

Source U.S. Department of Commerce

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