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Source: Newsmaker.id
New home construction activity in the United States (US) declined again in September 2026, reflecting weak demand in the housing sector.
According to US government data released on Tuesday (October 20, 2026), "housing starts"—the construction of new homes—fell by 5.2% to an annualized rate of 1.22 million units, reaching its lowest level in four months. This figure fell short of the 1.31 million units projected by economists in a Bloomberg survey.
The weakness in the housing sector is further underscored by a decline in the construction of single-family homes, which dropped to a one-year low. This indicates that the US property market continues to face challenges amid high financing costs and diminished consumer purchasing power. A slowdown in construction activity could also exert pressure on related sectors—such as building materials, construction labor, and the broader real estate industry—all of which have historically played a vital role in supporting US economic growth.
The weaker-than-expected housing data may draw the attention of the Federal Reserve ahead of its interest rate decision on October 27–28. Should the slowdown in the property market persist, the market might scale back expectations for further interest rate hikes, potentially weighing on the US dollar and creating room for gold prices to strengthen. However, persistent inflation and surging energy prices remain significant challenges for the Fed as it determines the direction of its monetary policy. Consequently, developments in the housing sector will serve as a key indicator for gauging the resilience of the US economy toward the end of the year.
Source: Newsmaker.id