Housing Starts Down in July on Supply Chain Challenges

Economics
Published

Supply chain and labor challenges helped to push overall housing starts down 7.0% percent to a seasonally adjusted annual rate of 1.53 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The July reading of 1.53 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months.

Within this overall number, single-family starts decreased 4.5% to a 1.11 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, decreased 13.1% to a 423,000 pace.

“The latest starts numbers reflect declining builder sentiment as they continue to grapple with high building material prices, production bottlenecks and labor shortages,” said NAHB Chairman Chuck Fowke. “Policymakers need to prioritize the U.S. supply chain for items like building materials to ensure builders can add additional inventory the housing market desperately needs.”

“The decline in single-family permits indicates that builders are slowing construction activity as costs rise,” said Danushka Nanayakkara-Skillington, NAHB assistant vice president for forecasting and analysis. “Starts began the year on a strong footing but in recent months some projects have been forced to pause due to both the availability and costs of materials.”

On a regional and year-to-date basis (January through July of 2021 compared to that same time frame a year ago), combined single-family and multifamily starts are 27.7% higher in the Northeast, 20.8% higher in the Midwest, 18.5% higher in the South and 27.7% higher in the West. Overall permits increased 2.6% to a 1.64 million unit annualized rate in July. Single-family permits decreased 1.7% to a 1.05 million unit rate. Multifamily permits increased 11.2% to a 587,000 pace.

Looking at regional permit data on a year-to-date basis, permits are 24.9% higher in the Northeast, 23.0% higher in the Midwest, 25.9% higher in the South and 28.2% higher in the West.

Visit Housing Economics on nahb.org for additional housing data.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics

Oct 08, 2025

How Do Median Square-Foot Prices Differ by Region?

Median square-foot prices for new single-family detached homes started in 2024 grew modestly, according to NAHB’s analysis of the latest Survey of Construction data. See how they differ by region.

Member Benefits | Membership

Oct 07, 2025

Tax Incentives That Multiply the Benefits of NAHB's Vehicle Savings Programs

Combining the benefits of Section 179 tax deductions with the discounts offered through the NAHB Member Savings Program can be a game-changer for business owners.

View all

Latest Economic News

Economics

Oct 07, 2025

Minority-Owned Residential Building Firms Continue to Rise

The share of minority-owned new residential builders and remodelers has more than doubled since the Great Recession, with noticeable gains from 2017 to 2022. Nevertheless, when compared to the overall U.S. population, minority-owned firms continue to be underrepresented within both housing sectors.

Economics

Oct 06, 2025

Shorter Apartment Construction Time in 2024

The average time needed to complete construction of a multifamily building after obtaining authorization edged down in 2024, according to the 2024 Survey of Construction (SOC) from the Census Bureau. On average, it took 19.6 months from permit to completion, about 0.3 months shorter than in 2023.

Economics

Oct 03, 2025

Supply-Side Cost Pressures Drove Housing as Inflation Leader in 2024

Though the rate of inflation peaked in June 2022, consumer prices continued to increase throughout 2023 and 2024 as inflation drove further price growth, according to 2024 CPI review from the Bureau of Labor Statistics.