Sellers retreat as new listings hit record August low

Plus: Housing starts drop 8.5% in August

September 18, 2025

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😊 Welcome back! Today’s newsletter is 786 words—a 2.5-minute read.

1. Housing starts drop 8.5% in August

According to U.S. Census Bureau data released Wednesday, housing starts fell 8.5% in August from July, reaching a seasonally adjusted annual rate of 1.307 million units. That’s a 6.0% decline from 2024.

  • The single-family sector saw the biggest drop, down 11.7% year-over-year to a 890,000-unit pace, while multi-family starts jumped 15.8% to 403,000 units.

Builders pulled back on permits as well. August’s seasonally adjusted annual rate of 1.312 million was down 3.7% from July and 11.1% from last year. Both single-family (856,000 units) and multi-family (403,000 units) permits posted annual declines of 11.5% and 10.5%, respectively.

2. Austin launches fund to preserve naturally affordable apartments

Last week, the Austin City Council voted to begin creating a housing fund designed to attract philanthropic support for preserving naturally occurring affordable housing.

The idea was first proposed by Council Member Duchen after some city leaders raised concerns about “unintended consequences” of the city’s DB 90 incentive program, which allows developers to build taller buildings in exchange for including affordable units.

In at least one case—the Acacia Cliffs apartment complex—the program led to the demolition of existing affordable housing. While the replacement project met DB 90 requirements, it resulted in a net loss of affordable units.

The new housing fund could help prevent situations like this by providing property owners with grants to renovate their buildings in exchange for keeping units affordable.

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3. Catch up quick

🔻 Could the Federal Reserve interest rate cut boost the housing market? (BBC)

🏠 $1M 3D-printed homes coming to Wimberley. (ICON)

💎 Quiet luxury: the new trend reshaping high-end real estate. (Realtor.com)

💸 Homeowners have lost $9,200 in home equity. (Cotality)

📊 Student rents grew a little more slowly than market-rate rents. (Axios)

A MESSAGE FROM DAVE YOUR MORTGAGE GUY

I got his VA loan done in 2 weeks!

Tuned in for the whole story and how I did it!

4. Ex-NASA employee, husband convicted in Texas mortgage fraud case

A Missouri City couple, Noreen Khan, 52, a former NASA employee, and her husband, Christopher Mayberry, 53, have admitted to orchestrating a fraudulent mortgage financing and refinancing scheme, according to the U.S. Attorney’s Office for the Southern District of Texas.

Court documents revealed the couple took out large personal loans to buy their home, then defaulted. To erase their debts, they claimed to be victims of identity theft. Prosecutors said they submitted fake pay stubs, tax forms, and bank statements to secure and refinance loans on their luxury property.

Khan and Mayberry now face up to five years in federal prison and a $250,000 fine, along with the potential forfeiture of their home. They have also been ordered to pay $276,709 in restitution before their sentencing on December 18.

5. Sellers retreat as new listings hit record August low

According to Zillow’s latest housing market report, new listings fell 7.3% month-over-month in August, marking the lowest level for that month in Zillow’s records.

Zillow noted that slowing sales are driving the decline, with the median list-to-sale timeline stretching to 27 days — seven days longer than last year and one day longer than pre-pandemic norms.

Inventory remains 15% higher than a year ago, but supply slipped 1.3% from July’s peak as more sellers chose to stay on the sidelines.

"Buyers who can afford a home and have been waiting for the right moment should look closely at what's available now. Options are on the shelves, even if they're not all fresh. Sidelined buyers should revisit their budget; mortgage rates are lower than recent years, and in some markets, sellers are more willing to deal.“

Zillow Senior Economist Kara Ng

6. Texas metros lead in percentage of mortgage-free homeowners

According to ResiClub’s analysis of the latest U.S. Census Bureau data, a record 40.3% of U.S. owner-occupied housing units are now mortgage-free. That’s up from 39.8% in 2023 and well above the 32.8% recorded in 2010.

Demographics are the biggest driver of this trend. Older homeowners are much more likely to be mortgage-free, and as Baby Boomers age, they’re pushing the national share higher. ResiClub reports that 54% of the 35 million mortgage-free homeowners are 65 or older.

Here are the metros with the highest share of mortgage-free homeowners among the 200 largest by population:

  1. McAllen, TX — 61.8%

  2. Brownsville, TX — 57.8%

  3. Beaumont, TX — 57.1%

  4. Kingsport, TN — 56.2%

  5. Longview, TX — 55.8%

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