# Housing Starts Decline to 1.246 Million Annual Rate October sees drop in housing starts and developments in rental markets. - **Source:** [Calculated Risk](https://www.calculatedriskblog.com) - **Published:** 2026-01-10 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/4a11d940-3432-4e69-9242-47e3db039685 ## Decline in Housing Starts U.S. housing starts fell to an annual rate of 1.246 million in October 2025. This decline is attributed to economic uncertainties and rising interest rates. Industry representatives indicate they will adopt a more cautious growth strategy in the coming period. ## Home ATM Closing Down The 'Home ATM' phenomenon of cash-out refinancing significantly decreased in Q3. Consumers are limiting equity withdrawals due to higher interest rates, which may also impact household spending patterns moving forward. ## Local Market Conditions December data reveals varying trends across local housing markets. While prices stabilize in some regions, others continue to see declines. Experts emphasize that regional economic conditions explain these divergences. ## Year-over-Year Rent Declines The rental market experienced year-over-year decreases, particularly in major cities. This trend is explained by increased housing supply and reduced demand, presenting favorable conditions for renters in competitive markets. ## Housing Bubble and Debt Ratio As housing bubble concerns persist, the ratio of mortgage debt to GDP remains closely monitored. Economists continue warning about debt sustainability levels, with this metric being crucial for financial stability assessments. ## Importance of Market Analysis Housing market data serves as a key indicator of overall economic health. Construction activity, rents, and debt levels guide policymakers and investors alike. Market observers eagerly await how balances will shift in the near term. ## Sources covering this story - http://www.calculatedriskblog.com/2026/01/real-estate-newsletter-articles-this_050832638.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._