July housing starts fall 12.4% as building permits rise

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The split between fewer starts and more permits gives loan officers a supply signal to monitor in new-construction and inventory-tight markets.

July housing starts fell 12.4%, according to a HousingWire report published August 18, 2026, with both single-family and multifamily construction slowing. At the same time, building permits rose 5%, creating a mixed read on the new-construction housing market.

For mortgage professionals, the practical issue is supply. A sharp drop in starts can point to fewer future homes entering the market, while rising permits may mean builders still have projects queued up even if they are not breaking ground at the same pace right now.

Key takeaways

• HousingWire reported that July housing starts fell 12.4%, a larger-than-expected decline.
• Both single-family and multifamily housing starts slowed in July.
• Building permits rose 5%, creating a mixed signal for future housing supply.
• Loan officers should watch local new-construction timelines and inventory, not just the national headline.

Sources

• HousingWire — July housing starts fall as both single-family and multifamily slow

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