May housing starts have plummeted to the lowest level since pandemic disruptions six years ago, as reported by the U.S. Census Bureau. Recent builder confidence has decreased, largely due to rising material and financing costs. This decline may worsen housing shortages, threatening progress in most states towards meeting the demand for new housing. The annual rate dropped to 1.17 million, marking an 8.5% decrease from May 2025.
The South and West experienced substantial reductions in housing starts, with 15% and 11% decreases respectively, while the Northeast and Midwest saw increases of 19% and 6%. The annual completion rate fell 14.2% from May 2025, reaching about 1.3 million units, the lowest since January 2022.
New permits remained steady at 1.4 million, with a rise in apartment units but a decline in single-family homes. Notably, the Midwest saw a 26% drop in new apartment permits, and the West experienced a 7% decrease in single-family homes. This fluctuation highlights ongoing challenges in the construction industry, affecting housing availability across regions.
For more information, contact Stateline reporter Tim Henderson at [email protected].
This story was originally produced by Stateline, part of States Newsroom, supported by grants and donors as a 501c(3) public charity.
