National housing starts dipped in May to the lowest level seen in six years, rivaling that of the pandemic era.
According to an announcement from the U.S. Census Bureau, annual starts fell to 1.17 million, which is an 8.5% decline year-over-year. This is the lowest number of starts since April 2020.
The decline in starts was primarily seen in the South and West, with 15% and 11% declines, respectively. The Northeast and Midwest, however, saw gains of 19% and 6%.
This comes as builder confidence has fallen due to elevated material and financing costs. Completion rates across the nation fell 14.2% YoY to approximately 1.3 million units. This greatly exacerbates the overall housing slowdown, as it is the lowest number of completions since January 2022.
New permits remained mostly flat at 1.4 million. The month saw an increased number of permits for multifamily properties and fewer permits for single-family projects.
Despite this, the Midwest is pivoting toward single-family as apartment permits fell 26%. The West is seeing a rise in single-family units with a 7% increase. (Source: Nevada Current)
