by Residential building permits were a bright spot, rising 3.5% during the same period
WASHINGTON — Year-over-year residential construction declined in two of three key areas in August, signaling an ongoing slowdown in one of the most important factors driving furniture sales.
The bright spot was building permits, which rose 3.5% to 1,394,000 from 1,347,000 in August 2025 and falling 2.7% below 1,433,000 in July. Of the August total, 878,000, or 64.1%, were single-family homes, 1.8% below 894,000 in July.
Housing starts totaled 1,275,000, down 1.2% below 1,291,000 in August 2025 and 2.6% below 1,433,000 in July. Of the August total, 918,000, or 72%, were single-family homes, or 7.6% above 853,000 in July.
Housing completions totaled 1,128,000, 27.1% below 1,548,000 in August 2025 and 11.9% below 1,280,000 in July. Of the August total, 816,000, or 72.3%, were single-family homes, down 10.4% from 911,000 in July.
The number of housing completions suggests a significantly lower number of people were moving into new homes during the period, likely also representing fewer furniture sales. In fact, furniture stores reported a 2.7% drop in year-over-year July sales, and relatively level month-over-month sales activity, suggesting the market for furniture has remained much more resilient than the market for new homes suggests.
The drop in housing starts, while far less on a percentage basis, could also signal a corresponding drop in housing completions early next year when those homes are completed.
By region the activity was as follows:
+ In the Northeast, building permits rose 5.8% from August 2025 and declined 15.8% from July; in the Midwest, they rose 3.5% from August 2025 and declined 7.6% from July; in the South, they rose 4.9% from August 2025 and declined .4% from July; and in the West, they declined .6% from August 2025 and rose 1.6% from July.
+ In the Northeast, housing starts were flat from August 2025 and declined 44.5% from July; in the Midwest, they declined 10.8% from August 2025 and declined 12% from July; in the South, they declined 1.2% from August 2025 and declined 1.3% from July; and in the West, they rose 5.2% from August 2025 and rose 32.4% from July.
+ In the Northeast, housing completions declined 31.3% from August 2025 and rose 40.6% from July; in the Midwest, they declined 36% from August 2025 and declined 21.2% from July; in the South, they declined 21.8% from August and declined 9.5% from July; and in the West, they declined 24.8% from August 2025 and declined 14.7% from July.
