Building permits for privately-owned housing units in the U.S. fell to a seasonally adjusted annual rate of 1,396,000 in July, according to the latest U.S. Census Bureau data. This marks a 4% decline from the revised June figure of 1,454,000 and a 7% decrease compared to July 2023's rate of 1,501,000. Single-family authorizations remained relatively stable, dipping just 0.1% to 938,000. Meanwhile, permits for buildings with five units or more dropped to 408,000.
Privately-owned housing starts also reflected the broader downturn, with July figures at an annual rate of 1,238,000, a 6.8% drop from the revised June estimate of 1,329,000. Single-family housing starts saw a sharp 14.1% decline to 851,000 units, while buildings with five or more units saw starts fall to 363,000. On a year-to-date basis, single-family starts have increased by 11.4%.
Housing completions showed a mixed picture. Completions fell by 9.8% in July to 1,529,000 units, down from June’s revised rate of 1,696,000. However, the data shows an increase of 13.8% from July 2023. Single-family housing completions edged up slightly by 0.5% to 1,054,000 units, while completions for buildings with five or more units rose to 473,000.
A lack of affordability and buyer hesitation stemming from elevated interest rates and high home prices contributed to a decline in U.S. builder sentiment in August. Builder confidence in the market for newly built single-family homes was 39 in August, down two points from a downwardly revised reading of 41 in July. This is the lowest reading since December 2023, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).
