The number of homes started in the US in May fell 9.8% from the previous month to 1.256 million at an annualised rate, the country’s Commerce Department said.
That’s the lowest rate in five years.
According to the revised data, the number of new buildings stood at 1.392 million in April, not 1.361 million as previously reported.
Analysts on average had forecast a decline to 1.36 million from the previously announced April level, according to Trading Economics.
High mortgage rates and significant amounts of available homes for purchase continue to weigh on the construction market.
Construction of single-family homes rose 0.4% last month to 924,000, while the number of new multifamily units (including apartments and condominiums), a volatile segment of the market, fell 30.4% to 316,000.
Building permits for new homes fell 2% in May to 1.393 million at an annualised rate, also the lowest level in five years. Experts on average had expected an increase to 1.43 million from 1.422 million in April.
Building permits for single-family homes fell 2.7 per cent to 898,000, while multifamily permits rose 1.4 per cent to 444,000.
The number of new construction starts in the US last month was 4.4% lower than in May 2024.