US July Housing Starts Plunge 12.4% to 1.239M Units, Far Below Forecasts

US housing starts fell sharply in July 2026, dropping 12.4% month-over-month to an annualized rate of 1.239 million units, well below the consensus estimate of 1.345 to 1.350 million and a steep reversal from June's 19.7% surge to 1.415 million units. The miss was nearly double what analysts had expected, with forecasts calling for a decline of only around 5.9%. Building permits told the opposite story, rising 5.0% in July to a preliminary reading of 1.443 million, far outpacing the 0.6% gain that had been anticipated, a divergence that suggests future construction activity may recover even as current groundbreakings stumbled.

The data landed alongside a busy economic calendar that included import and export prices, industrial production, and pending home sales, all against a backdrop of persistently high home prices that continue to pressure both buyers and renters across the country.