US single-family housing starts slide to eight-month low; imported inflation increases sharply
Multifamily starts plunged 41.6% as elevated mortgage rates and higher materials costs kept builders cautious, the National Association of Home Builders said.
- On Tuesday, the Commerce Department reported overall housing starts fell 15.4% in May to a seasonally adjusted annual rate of 1.177 million units, marking a six-year low.
- Multi-Family housing starts plunged 41.6% to 284,000 units, while the 30-year fixed-mortgage rate increased more than 50 basis points since late February due to war-driven inflation, per Freddie Mac.
- Single-Family housing starts fell 1.9% to 882,000 units, yet permits rose 0.6% to 886,000, signaling builder caution; construction material costs increased 9.6% over the past year, per the Associated General Contractors of America.
- Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets, noted the pullback prevents an "undesired backup in the inventory of new homes," though labor and lot scarcity hinder addressing the estimated 1.2 million home shortage.
- Sal Guatieri, a senior economist at BMO Capital Markets, stated there is "little indication that U.S. home building will break to the upside anytime soon," while Jeffrey Roach, chief economist at LPL Financial, argued policy must address supply to resolve the affordability crisis.
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Idaho State Journal
Housing starts sink to pandemic levels as builders worry about inflation
May housing starts fell to the lowest level since the pandemic disrupted construction six years ago, the U.S. Census Bureau announced Tuesday. Builder confidence has dropped recently because of higher material and financing costs.
US Housing Starts Fall To Lowest Level Since 2020 As Residential Construction Activity 'Rapidly Slows,' S
Market commentator The Kobeissi Letter said on Thursday that U.S. housing starts, which track when construction officially begins on new residential buildings, fell sharply in May, signaling a slowdown in residential construction as both single-family and multifamily building activity weakened. Kobeissi said housing starts dropped 15.4% month-over-month to a seasonally adjusted annual rate of 1.18 million units, the lowest level since May 2020. …
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…
US single-family housing starts slide to eight-month low; imported inflation increases sharply
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.
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