Housing starts outlook turns negative through 2027 as costs rise

Single-family housing starts rose in August but are down for the year and are expected to weaken even further, as homebuilders slow production in the face of higher construction costs and hesitant consumer demand. While total new residential construction fell 2.6% in August, this monthly decline came amid a steep 21.7% pullback in multifamily starts, according to data released Thursday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD). Housing starts, when accounting for both single-family and multifamily, slipped to a seasonally adjusted annual rate of 1.275 million units, 1.2% below the August 2025 rate of 1.291 million units. On the other hand, the seasonally adjusted annual rate of single-family starts in August grew 7.6% to 918,000. At first glance, this monthly growth may seem to signal strength, but single-family starts between January and August were 4.9% below the rate experienced during the same period in 2025, reflecting a slowing construction pipeline. “Single-family construction showed some life in August, but builders aren’t stepping on the gas just yet. New-home inventory remains elevated, affordability is still keeping buyers o...