Amid high interest rates and rising construction costs, single-family building slipped in May, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
Private starts in May were at a seasonally adjusted annual rate of 1,177,000, a 15.4% decrease from April and a 8.7% decrease from May 2025 (1,289,000). Single-family housing starts were at a rate of 882,000, a 1.9% drop from the revised April figure of 899,000. The May rate for units in buildings with five units or more was 284,000.
“The decline in housing starts aligns with NAHB’s latest builder survey, which showed builder sentiment weakening further in June,” says Bill Owens, chairman of the National Association of Home Builders (NAHB). “Elevated mortgage rates, affordability challenges, and cautious buyers continue to weigh on demand for new homes. Builders are offering incentives and cutting prices, but difficult market conditions are still limiting sustained momentum for new construction.”
Privately-owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 1,413,000, which is 0.7% below the revised April rate of 1,423,000 and is 0.2% below the May 2025 rate of 1,416,000. Single-family authorizations in May were at a rate of 886,000, which is 0.6% above the revised April figure of 881,000. Authorizations of units in buildings with five units or more were at a rate of 474,000 in May.
“Year-to-date declines in single-family housing starts and permits underscore the continued challenges in the housing market,” said Jing Fu, NAHB’s senior director of forecasting and analysis. “While the Midwest has shown some resilience, lower permit activity indicates builders remain cautious about future construction amid economic uncertainty and affordability pressures.”
In May, completions were at a seasonally adjusted annual rate of 1,313,000, an 8.1% decrease from April and 14.2% below May 2025. Single-family housing completions in May were at a rate of 872,000, which is 1.6% below the revised April rate of 886,000. The May rate for units in buildings with five units or more was 426,000.
