US Housing Starts Fall to Lowest Level Since 2020

2025-06-18 12:33 By Joana Ferreira 1 min. read

US housing starts dropped sharply by 9.8% month-over-month in May 2025 to a seasonally adjusted annual rate of 1.256 million units, down from an upwardly revised 1.392 million in April and well below market expectations of 1.36 million.

This marked the weakest level since May 2020, in the early aftermath of the COVID-19 pandemic, as high mortgage rates and an elevated supply of homes for sale dampened builder sentiment and construction activity.

Starts for multi-family buildings with five or more units plummeted 30.4% to 316,000 units, while single-family starts—the largest segment of homebuilding—edged up just 0.4% to 924,000 units.

Regionally, housing starts declined sharply in the Northeast (-40.0% to 105,000 units), Midwest (-10.2% to 184,000), and South (-10.5% to 693,000), but rose in the West (+15.1% to 274,000).



News Stream
US Housing Starts Plunge to Six-Year Low
US housing starts fell 15.4% month-on-month in May 2026, reaching a seasonally adjusted annual rate of 1.177 million, the lowest since May 2020. This follows a downwardly revised 1.392 million in April and fell short of market forecasts of 1.43 million. The data indicates that high mortgage rates are curbing builder activity, with contractors adopting a cautious approach as they reduce the inventory of new homes for sale due to sluggish demand. To attract buyers, many have lowered prices, provided mortgage rate subsidies, and slowed the construction of spec homes, which are properties built without a signed contract. Multi-family starts plunged 41.6% to 284,000, the lowest since November 2024, while single-family starts slipped 1.9% to an eight-month low of 882,000. Regionally, construction activity declined sharply in the South (down 17.0% to 594,000), the West (down 17.2% to 264,000), and the Northeast (down 26.8% to 123,000), while the Midwest saw a 3.7% increase to 196,000.
2026-06-16
US Housing Starts Fall Less than Expected
US housing starts were down 2.8% month-on-month to a seasonally adjusted annual rate of 1.465 million in April 2026, compared to an upwardly revised 1.507 million in March which was the highest level since December 2024 and above forecasts of 1.41 million. The data suggest that high mortgage rates are weighing on builders. Single-family starts were down 9% to 0.93 million, while multi-family starts jumped 14.3% to 0.529 million. Regionally, construction activity declined in the South (+9.1% to 794,000), the West (-11% to 723,000), but increased in the Northeast (+16.1% to 180,000), the West (+5% to 356,000) and the Midwest (+2.5% to 206,000).
2026-05-21
US Housing Starts Surge to 15-Month High
US housing starts rose 10.8% month-on-month to a seasonally adjusted annual rate of 1.502 million in March 2026, the highest level since December 2024 and well above forecasts of 1.40 million, as builders scaled up construction despite ongoing affordability challenges. Single-family starts surged 9.7% to a 13-month high of 1.032 million, while multi-family starts jumped 9.6% to 446,000. Regionally, construction activity climbed sharply in the South (+9.1% to 794,000), the West (+7.2% to 311,000), the Midwest (+12.2% to 221,000), and the Northeast (+24.8% to 176,000). Meanwhile, building permits, a leading indicator of future construction, fell to an annualized pace of 1.372 million, the lowest level since August. The data suggests the housing market may be finding its footing, with builders using incentives to draw in buyers. Yet, the Iran war has introduced fresh economic uncertainty, pushing material costs and mortgage rates higher.
2026-04-29