Bill Owens, chairman of the National Association of Home Builders (NAHB) and a home builder and remodeler from Worthington, Ohio, commented on the report, “Housing starts declined in September as high mortgage rates, persistent affordability challenges and rising construction costs held back home building. High land, labor and construction costs are eroding builder confidence. A sustained increase in home building is key to long-term affordability, but near-term construction depends on mortgage rates, financing conditions and efforts to ease regulatory barriers.”

“Declining housing starts reflect the high borrowing costs and affordability challenges builders face, consistent with our recent builder surveys,” said Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis. “September’s single-family starts data align with our forecast of lower production in 2026, with further declines expected in 2027 as rates stay elevated and material costs rise.”

On a regional and year-to-date basis, combined single-family and multifamily starts were 8.3% higher in the Northeast, 2% lower in the Midwest, 0.3% lower in the South and 6.3% lower in the West.

Overall permits decreased 0.2% to a 1.40-million-unit annualized rate in September. Single-family permits decreased 4% to an 845,000-unit rate and are down 4.8% compared to September 2025. Multifamily permits increased 6.1% to an annualized 555,000 pace and are down 0.2% compared to September 2025.

Looking at regional permit data on a year-to-date basis, permits were 10.6% higher in the Northeast, 2.2% higher in the Midwest and 3.2% lower in the South. The West saw no change.