New US Home Construction Plunges to Slowest Pace Since June 2020
What was the annualized rate of U.S. housing starts in May?
In May, the annualized rate of U.S. housing starts decreased by 5.5% to 1.28 million units, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This drop was unexpected and marked the lowest level since June 2020.
How many consecutive months have permits for single-family homes dropped?
Permits for single-family homes dropped for a fourth straight month to the slowest pace in a year.
What impact might decreased homebuilding have on U.S. economic growth?
Decreased homebuilding may negatively impact U.S. economic growth as it can lead to a slowdown in residential construction, potentially causing a reduction in jobs, lower personal earnings, and less tax revenue for governments. Additionally, lower housing supply may contribute to higher home prices, making it difficult for Americans to afford homeownership and spend on other goods and services.