Housing Starts Sink to Pandemic Levels as Builders Worry About Inflation
Multi-family starts plunged 41.6% and single-family activity fell 1.9%, the Commerce Department said, as high mortgage rates and costs weighed on builders.
- Overall housing starts dropped 15.4% in May to a pace of 1.177 million units, pushing homebuilding to a six-year low, according to a Commerce Department report released on Tuesday.
- Higher mortgage rates and elevated building material costs pressured single-family homebuilding, which fell 1.9% to a seasonally adjusted annual rate of 882,000 units, the Census Bureau reported.
- Starts for housing projects with five units or more plunged 41.6% to a rate of 284,000 units, while overall building permits slipped 0.7% to a rate of 1.413 million units last month.
- A National Association of Home Builders survey on Monday showed builder sentiment deteriorated in June, as labor scarcity and limited building lots created affordability pressures.
- BMO Capital Markets senior economist Sal Guatieri said there is "little indication" home building will break upside soon, given high mortgage rates and elevated new home inventories relative to sales.
21 Articles
21 Articles
New Housing Starts Sink To Lowest Levels in 6 Years: Report
Housing starts in the United States fell to their lowest level since 2020 as builders grapple with high construction costs and weak demand, while consumers wrestle with elevated mortgage rates and affordability. Total housing starts, which include single-family homes, apartments, and condominiums, declined by 15.4 percent from April to May to a seasonally adjusted annual rate of 1.18 million housing units, a Census Bureau and Department of Housi…
LA Daily News
OC RegisterHousing starts drop to weakest pace since 2020
The decline was driven by a steep decline in apartment projects.
US Single-Family Housing Starts Hit Eight-Month Low, Import Prices Rise Above Expectations
U.S. single-family homebuilding fell to an eight-month low in May, pressured by higher mortgage rates and building material prices, suggesting the housing market could remain a drag on economic growth in the second quarter. The decline combined with a plunge in multi-family housing starts to push down overall homebuilding to a six-year low last month, the report from the Commerce Department on Tuesday showed. Labor and building lots are also sca…
Zero Hedge
Nemos News NetworkUS Housing Starts Collapsed In May To Lowest Since COVID
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
The large Spanish construction companies operating in the United States have received a jar of cold water. The start of housing in May fell by 15.4%, the worst number since the months of confinement in 2020, which puts in check the contracts of subsidiaries such as Turner — controlled by ACS— and Ferrovial. Indignometer Level of impact for Spain: 8/10. The slowdown threatens the income of two Spanish multinationals with a strong presence in the …
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