U.S. housing starts fell 8.5% in August, dropping to an annualized rate of 1.31 million units.
Single-family starts declined 7% to 890,000, the lowest level since July 2024, while multifamily fell 11.7% to 417,000.
Builders blame affordability challenges for weaker buyer traffic and slower construction.
Recent Fed rate cuts could help by lowering borrowing costs for buyers and builders.
Permits also fell 3.7%, signaling further pressure on future housing supply.
