US Housing Starts Plunge 15.4% in May to Lowest Since May 2020
US housing starts fell 15.4% month-over-month in May to an annualized rate of 1.18 million units, the lowest since May 2020. April's figure was revised down by 73,000 units. Multifamily starts dropped 40.2%, while single-family starts declined 1.9%.
Housing starts in the US dropped sharply in May, declining 15.4% month-over-month to an annualized rate of 1.18 million units. This is the lowest level since May 2020, according to the latest data.
April's initial reading of 1.39 million units was revised lower by 73,000 units. The current figure also stands well below the 5-year moving average of 1.44 million units.
The decline was led by multifamily starts, which plunged 40.2% month-over-month to an annualized 284,000 units, the lowest since November 2024. Single-family starts fell a more modest 1.9% to 882,000 units, the lowest since September 2025.
The data point to rapidly slowing residential construction activity.
Source: The Kobeissi Letter