Housing starts saw a substantial decrease of 14% last month, according to the most recent statistics compiled by the Census Bureau.
The numbers were also off by 3.5% when compared with where things stood a year ago in May of 2021.
The Census Bureau report additionally notes that “privately-owned housing units authorized by building permits in May” stood at just under 1.7 million, compared with April at 1.8 million, for an overall 7% decline.
While single-family starts saw a noted decline of 9.2% between April and May, the multi-family starts were down a significant 27% during that same time period.
Meanwhile, private sector housing completions in May came in at around 1.5 million. That number, notes the Census Bureau in its summary of recent trends, is “9.1% above the revised April estimate” of 1.3 million.
Year-to-year, housing completions were up by 9.3%.
In a statement, Jerry Konter, chairman of the National Association of Home Builders, said, Single-family home building is slowing as the impacts of higher interest rates reduce housing affordability.”
Konter added that an important part of the equation is the rising cost of construction, noting that “residential construction materials are up 19% from a year ago.”
By Garry Boulard
