Housing Starts Drop in May as Builders Remain Wary of Elevated Interest Rates

The construction of new residential housing units slowed down last month, with homebuilders struggling under an environment of high interest rates. “Privately owned housing starts in May were at a seasonally adjusted annual rate of 1,277,000. This is 5.5 percent below the revised April estimate of 1,352,000 and is 19.3 percent below the May 2023 rate,” the U.S. Census Bureau said in a June 20 press release. Housing starts are a key economic indicator measuring economic confidence. The Midwest region experienced the largest decline in housing starts, where numbers crashed by 19 percent month over month. This was followed by the South with a decline of 8.5 percent, while the Northeast region fell by 2.5 percent. The West saw a 10.4 percent increase in housing starts....