US Housing Starts Soar

Housing starts in the US jumped 19% to a seasonally adjusted annualized rate of 1427 thousand units in June 2026, the highest in three months, compared to forecasts of 1310 thousand. It follows a revised 15.4% jump in May that sent housing starts to a six-year low. Multi-family starts soared 76.3% to 513 thousand, following a 41% plunge in the previous month. Meanwhile, single-family starts edged down 0.2% to 895 thousand, a third consecutive month of falls, as high prices and mortgage rates are weighing on demand. Starts soared in all four main regions: the South (15.2% to 741 thousand), the Midwest (33.3% to 248 thousand, the highest since 2024), the Northeast (10.3% to 129 thousand) and the West (22.1% to 309 thousand).

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.

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).