Key facts
- U.S. housing starts fell 12.4% in July.
- U.S. overall housing starts reached an annual rate of 1.239 million units in July.
- U.S. single-family housing starts dropped 12.4% to an annual rate of 808,000 units in July.
- Canadian home sales rose 0.5% in July.
- Canadian Home Price Index increased 0.1% in July.
- Canadian home sales have risen for four consecutive months.
- U.S. pending home sales fell 2.3% in July.
- U.S. pending home sales reached their lowest level since January 2026 in July.
- U.S. pending home sales declined 2.2% year-over-year in July.
U.S. housing starts saw a sharp decline in July, with both single-family and multifamily construction experiencing pullbacks. Overall housing starts fell 12.4% month-over-month to an annual rate of 1.239 million units. Single-family starts were particularly affected, dropping 12.4% to an annual rate of 808,000 units. This downturn in the U.S. housing market is linked to rising interest rates and existing inventory issues.
In contrast to the U.S. trend, Canada's housing market showed signs of recovery. Home sales in Canada increased for the fourth consecutive month in July, marking a 0.5% rise from the previous month. The Home Price Index also edged up by 0.1%, indicating the first price increase since November 2024. This growth is partly supported by a decline in newly listed properties, which pushed the sales-to-new listings ratio closer to its long-term average.
Further complicating the U.S. housing picture, pending home sales decreased by 2.3% in July compared to June. This marks the lowest level for pending sales since January 2026. The year-over-year comparison also shows a decline of 2.2%. The National Association of Realtors cited elevated mortgage rates and record home prices as primary factors hindering affordability across most regions, contributing to the drop in contract activity.