New data from the US Census Bureau and the Department of Housing and Urban Development reveals that construction commenced on 403,000 new apartment units in August 2025. This increase reflects a continued focus on large-scale multifamily projects, particularly those consisting of five or more units. Despite this notable activity in apartment construction, the overall housing market displayed signs of decline.
In August, the total number of housing starts fell to a seasonally adjusted annual rate of 1,307,000 units, marking an 8.5% decrease from the revised figures reported for July. Single-family home construction also experienced a downturn, with starts dropping to 890,000 units, a decline of 7.0% from the previous month.
Indicators of Market Trends
While new construction slowed, completions accelerated. In August, housing completions increased to 1,608,000 units, reflecting an 8.4% rise from July. This uptick suggests that builders are progressing with previously initiated projects, contributing to a larger inventory of available homes.
The landscape for future construction appears less certain, as building permits, a critical indicator, decreased by 3.7% to an annual rate of 1.31 million in August. Within this figure, single-family permits declined by 2.2% to 856,000. The absence of economic analysis in the Census report limits insights into the underlying causes of these declines; however, the trends suggest that builders are responding to broader market conditions and potential economic pressures.
A Market in Transition
The mixed signals from the latest data illustrate a housing market in transition. While demand for housing persists, the increasing challenges related to construction costs and economic uncertainty may be influencing builders’ decisions. Fewer new projects are starting, even as more homes are being completed, highlighting a delicate balance between ongoing demand and the pressures facing the industry.
As the housing sector approaches the final quarter of the year, stakeholders will be closely monitoring these trends to gauge the market’s resilience and potential for recovery. The latest figures underscore the complexity of the current environment, where successes in apartment construction coexist with declines in overall housing starts and permits.
