The monthly
report on new residential construction from the Commerce Department revealed on
Thursday that housing starts tumbled by 5.5 per cent m-o-m in May to a
seasonally adjusted annual pace of 1.277 million (the lowest
level since June 2020 (1.250 million)), while building permits plunged by 3.8
per cent m-o-m to a seasonally adjusted annual rate of 1.386 million (the lowest
level since June 2020 (1.340 million)).
Economists had foreseen
housing starts of 1.370 million units for May and building permits of 1.450
million units.
Data for April
was revised to show homebuilding increasing
at a pace of 1.352 million units, instead of rising at a rate of 1.360 million
units as originally announced.
According to
the report, permits for single-family homes, the largest segment of the market,
fell by 2.9 per cent m-o-m in May, while approvals for the multi-family homes
segment (includes 2 to 4 and 5 or more housing units) declined by 5.6 per cent
m-o-m.
In the meantime, groundbreaking on single-family
homes dropped by 5.2 per cent m-o-m in May, while multi-unit starts plummeted
by 10.3 per cent m-o-m.