US housing starts plunge 15.4% in May to 1.18 million, lowest since 2020

April was revised down by 73,000 units from 1.39 million, leaving starts well below the 1.44 million five-year moving average.

Summary

US housing starts fell 15.4% month over month in May to a seasonally adjusted annual rate of 1.18 million units, marking the weakest reading since May 2020. The decline was compounded by a downward revision to April, which was cut by 73,000 units from the initially reported 1.39 million. At 1.18 million, new residential construction also came in below the five-year moving average of 1.44 million, underscoring a softer backdrop for homebuilding activity.

Terms & Concepts
  • housing starts: New privately owned homes on which construction has begun.
  • annualized rate: A monthly figure scaled to show the pace over a full year.
  • moving average: An average over time used to smooth short-term fluctuations.