Housing Starts Drop to Lowest Level Since June 2020

In May, housing starts dropped to their lowest level since June 2020. In the latest report by the Census Bureau, housing starts fell to a seasonally adjusted annual rate of 1.277 million, falling short of the forecasted rate of 1.370 million. This marks a 5.5% decrease from April and a 19.3% decline compared to one year ago.

Here is the opening of the monthly report:

Privately‐owned housing starts in May were at a seasonally adjusted annual rate of 1,277,000. This is 5.5 percent (±9.4 percent)* below the revised April estimate of 1,352,000 and is 19.3 percent (±10.0 percent) below the May 2023 rate of 1,583,000. Single‐family housing starts in May were at a rate of 982,000; this is 5.2 percent (±9.9 percent)* below the revised April figure of 1,036,000. The May rate for units in buildings with five units or more was 278,000.