U.S. single-family housing starts rise in August

U.S. residential construction data for August shows a mixed landscape. Single-family housing starts increased by 7.6% to a seasonally adjusted annual rate of 918,000 units, up 5.2% compared to August 2025. However, overall housing starts fell 2.6% to an annualized rate of 1.28 million units. Multifamily starts saw a significant decline, dropping 21.7% to an annualized rate of 357,000 units.

Private residential construction spending rose 1.1% in August to a seasonally adjusted annual rate of $882.3 billion, following declines in the second quarter. While spending on both single-family and multifamily construction saw slight monthly increases, both sectors remain down compared to the previous year. Remodeling spending saw the largest monthly gain at 2.5%, supported by demand for renovation and an aging housing stock.

Industry experts note that while single-family starts saw an unexpected increase, the market remains pressured by high mortgage rates, rising construction financing costs, labor shortages, and general economic uncertainty.