Single-Family Home Construction Falls Again in May in the Face of Soaring Borrowing Costs

New single-family home construction starts fell by 1.9% in May to a seasonally adjusted annual rate of 882,000 units, according to data released by the U.S. Census Bureau on Tuesday. This decline follows a trend of retreating construction activity, permits, and completions, attributed to economic uncertainty, elevated borrowing costs, and material rates. Overall housing starts also experienced a substantial decrease, dropping 15.4% month-over-month and 8.7% year-over-year to a seasonally adjusted annual rate of 1.17 million units. In May, municipalities issued 1.413 million permits for private housing construction, a 0.7% decrease from April's 1.42 million permits and a 0.2% decrease from May 2025's 1.416 million permits. Single-family home completions in May were 1.6% lower than April's revised rate of 886,000 units, and total housing completions declined by 8.1% compared to the previous month.