US building permits, a leading indicator for future home construction, rose 5% month over month in July 2026 to a seasonally adjusted annual rate of 1.443 million, reversing a 3% decline in June and exceeding market expectations of 1.37 million. The increase was led by a 9.1% rise in permits for buildings with five or more units to 490,000, while single-family permits climbed 2.5% to 894,000. Activity strengthened in the Midwest, South and West, while the Northeast declined. The rebound points to renewed construction momentum and could support housing supply over time, though high construction costs, labor shortages and zoning restrictions mean one month of data does not yet establish a trend.