US housing starts fell sharply in July 2026, dropping 12.4% from the previous month to a seasonally adjusted annualized rate of 1.239 million units. The reading came in well below market expectations for 1.35 million units and left new home construction not far above the six-year low of 1.182 million reached two months earlier. The slowdown was broad-based, with multi-unit homes down 15.6% and single-unit housing down 9.9%. Regionally, starts declined in the Midwest, South and West, while the Northeast posted an increase. The figures point to continued softness in residential construction, a closely watched indicator of housing-market momentum and broader economic demand.