U.S. housing construction fell sharply in July, with housing starts dropping 12.4% from the previous month to a seasonally adjusted annual rate of 1.239 million units, underscoring renewed weakness in residential construction.
The reading came in well below expectations for a decline to 1.35 million units and brought housing starts closer to the six-year low of 1.182 million recorded two months earlier.
The contraction was broad across housing types. Starts for buildings with multiple units fell 15.6% from June, while single-family housing starts declined 9.9%.
Housing Construction Falls Across Most U.S. Regions
Three of the four major U.S. regions recorded declines during the month.
Housing starts in the Midwest plunged 27.6% to an annualized 173,000 units. The South, the country’s largest residential construction market, recorded a 12.6% decline to 645,000 units.
Starts in the West fell 13.8% to 149,000 units.
The Northeast was the only region to record an increase, with housing starts climbing 17.1% to an annualized 164,000 units.
The July figures add to signs of pressure across the U.S. housing sector as elevated borrowing costs continue to affect financing conditions for developers and homebuyers.
Residential construction data remain an important measure of housing supply and broader economic activity because changes in new development can affect employment, construction spending and demand across related industries.
Source: U.S. Census Bureau.
