In July, U.S. single-family housing starts dropped 9.9% from June and 15.7% year-over-year, with total housing starts down 12.4% from June. All regions saw declines, led by the Northeast. Despite this, building permits rose 5% from June, suggesting potential future demand. High mortgage rates and construction costs continue to limit buyer activity, while builders remain cautious amid economic uncertainty and a persistent housing shortage.