- RealPage says single-family permits fell to an annualized 845,000 units in September, down 4.8% year over year and the lowest in 3.5 years, while starts slid 4.6% on the month.
- Multifamily starts hit 349,000 units, down 25.9% from last year, with the West down 56.7% and the Midwest down 54.4% while the South rose 16.8% to 205,000.
- Mortgage rates near 7.4% and high costs should keep pressure on builders, while multifamily completions, down 20.4% from last year, point to thinner future supply.
Homebuilders are pulling back, with single-family permits dropping to an annualized 845,000 units in September, a 3.5-year low, according to RealPage Analytics.
Permits slid 4% on the month and 4.8% annually. Starts fell 4.6% on the month to 859,000, though they remain 2.6% above last September.
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Why Builders Hold Back
RealPage’s Chuck Ehmann points to weaker consumer and builder confidence, along with mortgage rates, financing and construction costs, labor and regulation. Affordability and high prices are also limiting demand.
Mortgage rates are averaging about 7.4% this month, so Ehmann expects that pressure to persist. Single-family starts topped 1.3 million units in the post-pandemic low-rate boom and have drifted back toward 900,000.
Homes Under Construction Hold Steady
Single-family units under construction held at 587,000 on an annualized basis, down 2.8% from a year ago. Completions fell 2.4% on the month and 11% on the year to 840,000.
Approved-but-unstarted homes totaled 151,000, up 6.3% annually.
Multifamily Splits by Region
Apartment starts came in at 349,000 units, a 7.2% monthly drop and 25.9% below a year ago. Permits rose 5.9% on the month to 503,000. Unadjusted, though, starts and permits each gained nearly 7% over September 2025.
By region, the West saw starts collapse 56.7% to 48,000 units, with the Midwest off 54.4% at 35,000 and the Northeast off 43.5% at 62,000. Only the South grew, gaining 16.8% to reach 205,000.
On permits, the Midwest jumped 32.8% to 79,000 and the Northeast rose 8.5% to 83,000, while the West sank 17% to 100,000.
Why It Matters
Construction under way is thinning out. Apartment completions jumped 14.9% in the month to 339,000, yet remain 20.4% lower than last year, and the 677,000 units under way are 3.1% fewer than a year ago.
We covered the starts drop earlier this week, when multifamily starts fell 25.9% as construction costs climbed. Meanwhile, NAA’s read on permits said the data was not a broad recovery.
What’s Next
Authorized-but-not-started multifamily units rose 13.9% year over year to 123,000, so there is a backlog waiting on financing. Whether those units break ground will shape supply in late 2027 and beyond.
