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Today: June housing starts jumped 19% nationally but single-family construction flatlined at 895K units, building permits hit 10-month lows signaling weaker pipeline ahead, and foreclosures climbed 21% in H1 2026 with FHA/VA loans leading the stress.
National housing starts rose 19% in June to 1.427 million annual units, but the headline overstates real strength. Single-family starts held flat at 895K units (down 0.2% from May), while multifamily surged 76% to 513K units. This is a construction sector split, not a broad recovery. HousingWire, RISMedia
Building permits fell 3% to 1.367 million, the lowest in 10 months. Single-family permits dropped 2.4% to 871K units. Permits are a forward indicator, and this signals builders remain cautious about launching new projects despite persistent inventory shortages. For Richland County agents, this means new construction inventory will stay tight through Q4 2026. Watch for builders using deeper incentives (rate buydowns, closing cost credits) to move existing spec homes rather than breaking ground on new projects. HousingWire
Pending home sales dropped 5.4% in June and were down 0.3% year-over-year, with the Midwest posting the steepest decline at 8.9%. NAR cites elevated mortgage rates and record-high median prices as primary headwinds. Locally, this means Columbia buyers are delaying contract signings. If you have listings priced above $350K, expect longer DOM (Days on Market) and be ready to discuss pricing adjustments after 30 days. First-time buyers remain the most affected segment. Mortgage News Daily
Mortgage rates ended the week at weekly lows after back-to-back lower inflation reports, but rates remain near the highest levels since July 2025. The recent drop is welcome but does not change the longer-term rate environment. For active Columbia buyers, lock rates when you find a property rather than waiting for further declines. Mortgage News Daily
Foreclosures rose 21% in the first half of 2026 compared to H1 2025, with FHA and VA mortgages showing the highest stress levels. This is the third consecutive year of foreclosure increases as post-forbearance workouts expire and rate-reset ARMs hit payment shock thresholds. For Richland County investors, this creates opportunity. Pull foreclosure filings weekly from the Richland County Clerk of Court and target properties in the 29203, 29209, and 29223 ZIP codes where FHA/VA concentration is highest. Pre-foreclosure outreach (direct mail, door knocking) can source deals before courthouse steps. HousingWire
Single-family completions increased 6.6% in June to 964K units nationally, meaning builders are finishing homes already under construction but not launching new projects. This creates a narrow window where move-in-ready new construction inventory is available in Columbia suburbs (Blythewood, Chapin, Lexington) before the pipeline dries up. If you have buyers waiting for resale inventory, pivot them to new builds now while builders are offering incentives to clear completed spec homes. HousingWire
Columbia University (New York) acquired a 300+ unit student housing project at 99 Claremont Avenue for $122 million, paying a 221% premium over the 2024 acquisition price of $38 million. The deal reflects strong institutional appetite for purpose-built student housing near flagship universities. Locally, USC enrollment continues to drive off-campus housing demand in Five Points, the Vista, and Shandon. Investors holding 4-6 bedroom properties within 1.5 miles of campus should consider portfolio sales to institutional buyers rather than one-off dispositions. Cap rates (annual NOI divided by purchase price) on stabilized student housing near USC are compressing as national capital targets Columbia. Commercial Observer
Multifamily construction under way nationally stands at 682K units versus 582K single-family units, a rare inversion that signals where builder confidence sits. In Columbia, this means new apartment supply will increase in 2027-2028, particularly in the Harbison and Sandhill submarkets where multifamily zoning approvals have clustered. Property management clients with Class B/C rentals should prepare for vacancy pressure as new Class A units deliver. Consider rent concessions (first month free, waived deposits) to retain tenants before lease expirations. NAHB
The 21st Century ROAD to Housing Act became law, including streamlined regulations and incentives for local zoning reforms. NAHB notes it will take time for these measures to affect supply. South Carolina has not yet announced state-level implementation, but watch for Richland County and Lexington County to apply for federal zoning reform grants. If local jurisdictions adopt density bonuses or ADU (Accessory Dwelling Unit) allowances, lot value in established neighborhoods (Shandon, Forest Acres, Rosewood) will increase. Flag this for investor clients looking at infill opportunities. RISMedia
Builder confidence remains negative overall as elevated mortgage rates and construction financing costs weaken demand. NAHB reports builders are using generous incentives and price discounts to move inventory, compressing margins. Locally, this means Columbia-area builders (Mungo Homes, Eastwood Homes, Ryan Homes) will negotiate on upgrades, lot premiums, and closing cost assistance. Bring multiple offers when representing buyers on new builds to extract maximum concessions. NAHB