US Housing Construction Hits Lowest Pace Since 2020

USA: May 2024 saw new home construction in the US fall to its slowest pace since 2020, with high interest rates and borrowing costs continuing to impact the housing industry. Government data showed housing starts decreased by 5.5% to a 1.28 million annualized rate, while building permits dropped by 3.8%.

Authorized permits for single-family homes fell for the fourth consecutive month, and both multifamily and single-family units experienced declines in starts and permits. Hawkish stance by The Federal Reserve on interest rates, with mortgage rates around 7%, has contributed to low homebuilder sentiment.

The National Association of Home Builders (NAHB) reported that its NAHB/Wells Fargo Housing Market Index, a measure of construction industry optimism, had reached its lowest point since December 2023.

Source: Mortgage Professional America