US housing starts plunged 15.4% in May to 1.177 million units, marking the lowest level since the pandemic and significantly missing economist expectations. The decline was primarily driven by a collapse in multi-family rental starts, while building permits saw a minor 0.7% dip in line with market forecasts. Despite the weak housing data, US homebuilder stocks advanced following the passage of a congressional bill aimed at boosting affordable housing.
In a move signaling a major shift in federal housing policy, the US Congress has passed the '21st Century ROAD to Housing Act', a comprehensive reform package designed to increase supply and slash construction costs.
Read the full storyUS housing starts fell 15.4% in May to their lowest level since the pandemic, signaling a rapid cooling in residential construction due to elevated borrowing costs.
Housing starts fell to 1.177 million units as multi-family projects collapsed, marking the weakest construction activity since the COVID-19 era.