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US housing permits fall 1.7%, deepening shortage amid affordability crisis

Market News
14 Sep 2026
PRNewsWire
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Bearish
US housing permits fall 1.7%, deepening shortage amid affordability crisis

Residential building permits in the US dropped 1.7% over the year ending July 2026, running 19.4% below the pre-pandemic trend, signaling a worsening housing shortage. Detached single-family home completions fell 2.5% in 2025, marking the third consecutive annual decline and the lowest since 2020. Builders are responding by constructing smaller homes faster to maintain affordability, but the reduced pipeline risks tightening the market and driving prices higher when demand returns. Regional permit declines are concentrated in Sun Belt cities, while some coastal and Midwest markets see gains after years of subdued construction.

The new home construction boom is running out of steam, with Pluang's snapshot as of Sep 14, 2026 19:14 WIB showing mixed performance among US Real Estate stocks. Of 22 priced Real Estate-sector US stocks tradable on Pluang, 11 rose and 8 fell today. Notable movers include Realty Income Corp (O) at USD 59.94 with a +0.74% change, VICI Properties Inc (VICI) at USD 25.00 with +0.68%, and Public Storage (PSA) at USD 298.50 with +0.67%.

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