Housing Starts Lowest Since May of 2020
The monthly New Residential Construction report for May 2026 shows a construction disaster.
Housing Starts
Housing Starts Privately-owned housing starts in May were at a seasonally adjusted annual rate of 1,177,000.
This is 15.4 percent (±9.8 percent) below the revised April estimate of 1,392,000 and is 8.7 percent (±8.2 percent) below the May 2025 rate of 1,289,000.
Single-family housing starts in May were at a rate of 882,000; this is 1.9 percent (±10.8 percent) below the revised April figure of 899,000. The May rate for units in buildings with five units or more was 284,000.
Building Permits
Privately-owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 1,413,000.
This is 0.7 percent below the revised April rate of 1,423,000 and is 0.2 percent below the May 2025 rate of 1,416,000.
Single-family authorizations in May were at a rate of 886,000; this is 0.6 percent 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.
Housing Completions
Privately-owned housing completions in May were at a seasonally adjusted annual rate of 1,313,000.
This is 8.1 percent (±12.3 percent)* below the revised April estimate of 1,429,000 and is 14.2 percent (±11.8 percent) below the May 2025 rate of 1,530,000.
Single-family housing completions in May were at a rate of 872,000; this is 1.6 percent (±12.8 percent)* below the revised April rate of 886,000. The May rate for units in buildings with five units or more was 426,000.
Housing Starts Single Family vs Multi-Family
Single Family vs Multi-Family Details SA in Thousands
Total: 1,177
Single Family: 882
Multi-Family: 295
The total is the lowest since May of 2020 in the Covid pandemic.
Housing Units Under Construction
Units Under Construction Details
Total: 1,266
Multi-Family: 679
Single-Family: 587
Despite the big decline, there is still a large number of units under construction. But who can afford to buy?
On the surface, this will put price pressure on units as they complete. But many of these are pre-sold, I believe to buyers who will regret buying.
Mortgage Rates
The average 30-year mortgage rate is 6.58 percent, up from 5.99 percent in February according to Mortgage News Daily.
This is not good for either buyers or sellers.
Trump’s tariffs on steel, lumber, and appliances do not help either.
Related Posts
January 30, 2026: Dear Zoomers, Trump Says He “Wants to Drive Up Housing Prices”
Somehow, I doubt Gen Z will like this message.
May 26, 2026: Consumer Credit Stress Is Comparable to the Great Recession
Auto delinquencies are at a new record and credit cards are near record high.
May 31, 2026: Housing Stagnation for Over Three Years in New and Existing Home Sales
New and existing-home sales collapsed in 2022 and have gone nowhere since.
Comments
Log in or sign up to join the conversation.