Fact of the Week – 10/5/2026 - Connected World
What if a rebound in home construction doesn’t mean the housing market is recovering?
Single-family housing starts increased 7.6% in August to a seasonally adjusted annual rate of 918,000 units, according to the NAHB (National Assn. of Home Builders). That sounds encouraging—but builders are still facing significant challenges, with single-family production down 4.7% year to date.
NAHB says builders continue to contend with:
- Rising construction and financing costs
- Higher mortgage rates and affordability challenges
- Lot and labor shortages
- Ongoing economic uncertainty
- Cautious expectations for future construction
There are some signs of resilience. Single-family starts were 5.2% higher than August 2025, while single-family permits in the Midwest were up 2.9% year to date through August.
But the bigger picture remains complicated. Overall housing starts actually decreased 2.6% in August, and single-family permits fell 1.8% from July. NAHB notes declining permit activity suggests builders remain cautious about future construction.
For builders, developers,...
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