Builders have officially joined the “quiet quitting” movement, except instead of logging off Zoom at 4:59 pm, they’re shelving housing starts at a record pace. Buyers aren’t exactly rushing in either, which means the market’s vibe right now is basically: “after you, no really, after you.”

Story: Housing starts fell off a cliff in August, with permits dropping to 1.31 million (down 11% YoY) and starts themselves tumbling 8.5% from July. Single-family starts took the hardest hit, falling nearly 12% year-over-year to 890,000. Translation: builders have one foot on the brake and the other nervously tapping the floor mat. Why? Sluggish sales, rising costs, and a pileup of unsold homes. The one bright spot? Mortgage rates have ticked down since May, offering a whiff of affordability (kind of like catching a Doritos scent in an empty snack bag).

So What? For investors and managers, fewer housing starts mean tighter supply down the road (good news if you already own property, less so if you’re trying to expand). Builder hesitation signals a nervous market, but remember: fewer new homes + steady demand = better positioning for existing rental portfolios. And those “unsold new homes”? They could translate into buyer incentives, discounts, or opportunities for savvy investors who can time the lull.

What’s Next? Keep an eye on mortgage rates: they’ve softened since May, and if they dip further, fence-sitters could finally leap into the market. Also, watch builder confidence surveys and inventory levels. If those unsold homes linger, expect more price cuts, incentives, or creative financing schemes (“buy the house, get a free golf cart!”). Bottom line: Fall and winter might be slow, but today’s builder pause could flip into pent-up demand by spring.

Source: Zillow

Top Weekly Stories:

1️⃣ SFR/Multifamily Management: Multifamily demand had one of its strongest quarters in 25 years, with 116,000 units absorbed in Q2, despite pipelines drying up. Occupancy is rising, rent growth is slowing, and developers are tapping the brakes. 🪺 Read more

2️⃣ Insurance: Homeowners insurance premiums have risen by a staggering 70% since 2021, thanks to climate risks, pricier materials, and ballooning home values. 🪺 Read more

3️⃣ Mortgages: The Fed cut rates, but Powell’s “risk management” talk spooked bond markets, pushing Treasury yields (and therefore mortgage rates) back up. 🪺 Read more

4️⃣ Interesting Trends: Wages are finally beating housing costs: up 4.1% YoY versus rent growth at 2.6% and flat mortgage payments. 🪺 Read more

5️⃣ Policy Changes: HUD is floating a two-year cap on rental assistance programs. Supporters say it trims waste; critics warn it could displace 1.4M households and push landlords away from subsidy contracts. 🪺 Read more

👉 Video Highlight: How The Wealthy Use Real Estate To Explode Their Wealth (Copy This)

👉 Podcast Highlight: Why Cash Flow Won’t Make You Rich (But Real Estate Will)

👉 Off-Market Deal: Alabama Off-Market Deal