New data released by the US Census Bureau and the Department of Housing and Urban Development shows that construction began on 403,000 new apartment units in August 2025, all part of large-scale projects with five or more units.
Apartment Construction Picks Up Pace in August
Construction of apartment buildings with five or more units showed renewed momentum in August 2025, according to the latest data from the US Census Bureau and the Department of Housing and Urban Development.
Approximately 403,000 new multifamily units broke ground last month. However, this progress came with a 6.7% decline from July 2025, when multifamily permits reached unusually high levels.
Mixed Signals for Housing Development
In August, overall housing starts declined, falling to a seasonally adjusted annual rate of 1,307,000 units, down 8.5% from July’s revised estimate. Single-family starts also slipped, totaling 890,000 units, a 7.0% decrease from the previous month.
Meanwhile, housing completions picked up pace, rising to 1,608,000 units, an 8.4% increase from July, signaling that many previously initiated projects are now reaching completion.
The Impact of Economic Conditions
Building permits, a key indicator of future construction, fell 3.7% to an annual rate of 1.31 million in August. Single-family permits slipped 2.2% to 856,000.
Though the Census report offers no economic analysis, the declines in permits and starts suggest builders are reacting to broader market pressures. Even though fewer new projects started, more homes were finished in August, showing that builders are still working to complete existing housing.
As the industry moves into the final quarter of the year, the mixed signals from the data reflect a housing market in transition, balancing ongoing demand with mounting construction and economic pressures.
