Housing starts fall 5.2% in September while permits remain nearly flat

U.S. housing starts fell to a seasonally adjusted annual rate of 1.221 million in September, down 5.2% from August's revised estimate, according to Census Bureau and Department of Housing and Urban Development figures released October 20. The estimate was 7.4% below the September 2025 rate.

Single-family starts declined 4.6% from the revised August rate to an annual pace of 859,000. Construction in buildings with at least five units ran at a 349,000 annual rate. The reported monthly and annual changes carry wide confidence intervals, meaning the estimates should not be read as exact counts.

Building permits were steadier at a 1.400 million annual rate, down 0.2% from August and 3.0% from a year earlier. Single-family permits declined 4.0% for the month to an 845,000 rate, while permits for buildings with five or more units were at a 503,000 pace.

Completions moved in the opposite monthly direction, increasing 2.2% to a 1.192 million annual rate, though they remained 14.0% below a year earlier. Taken together, the estimates show weaker project starts, nearly level overall permitting and a monthly rise in finished homes. They are national figures and do not establish construction conditions in any particular Indiana market.

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