Single-Family Home Construction Plunges in July, But Permits Offer Signs of Hope

July brought a sharp decline in construction of new single-family homes across the U.S., but new permits show some signs of hope on the horizon. Single-family housing starts last month were at a seasonally adjusted annual rate of 808,000 in July, which is 9.9% below June and 15.7% below that month last year, the U.S. Census Bureau reported Tuesday. Multi-family housing starts, which are more volatile, settled back after a June surge.This dropped total housing starts to 1,239,000 in July. That's down 12.4% from June and 13.5% down from July 2025.This month's housing market indicators portray a rate-challenged housing market where builders are struggling to maintain good margins and buyers are scarce. But all sides have some optimism that relief could be in sight long-term.“The July decline in housing starts reflects broader weakness in the housing market,” said Danushka Nanayakkara-Skillington, who leads forecasting and analysis at the National Association of Home Builders. “Builders remain cautious as elevated mortgage rates, rising construction costs and economic uncertainty continue to limit demand."Every region saw declines in new privately-owned housing starts, led by a 27.1% d...