The U.S. housing market weakened further in July, with single-family housing starts falling 9.9% to an annualized rate of 808,000—the lowest level since November 2022. Starts were also down 15.7% from a year earlier, reflecting continued pressure from elevated mortgage rates, high home prices and broader economic uncertainty.
Existing-home contract signings also declined 2.3%, reaching their lowest level since January. With 30-year mortgage rates still around 6.77%, affordability continues to weigh on buyer demand and new construction.
There was a modest positive signal in single-family building permits, which rose 2.5% in July. However, permits remain near a three-year low, suggesting builders remain cautious about future projects.
Meanwhile, the manufacturing sector showed stronger momentum, driven largely by AI-related investment and demand for technology, semiconductors, data-center equipment and industrial supplies. Factory output reached its highest level since April 2022.
Key takeaway for SFR/BTR: High borrowing costs and weak housing demand continue to challenge residential development, while limited supply and affordability pressures could sustain long-term demand for rental housing and build-to-rent alternatives.
Source: Reuters
