Housing starts in the United States fell 9.6% month-over-month to an annualized rate of 1.446 million units in July of 2022, the lowest since February of 2021 and below market expectations of 1.54 million, according to the latest data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD).
Single-family housing starts, the largest share of homebuilding, dropped 10.1% to 916,000, the lowest level since June 2020. Starts for units in buildings with five units or more fell 10% to 514 thousand, according to the data.
Regionally, starts were lower in the Midwest (-33.8% to 139,000), the South (-18.7% to 710,000), and in the West (-2.7% to 367,000) but grew in the Northeast (65.5% to 230,000).
Permits for future homebuilding also dropped 1.3% to a rate of 1.674 million units. Single-family building permits dropped 4.3% to a rate of 928,000 units. Permits for multi-family housing projects were up 2.5% to a rate of 693,000 units, according to the data.