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

The Midwest region saw the biggest drop, with housing starts crashing by more than 19 percent in a single month.

An aerial view of homes in a housing development in Santa Clarita, Calif., on Sept. 8, 2023. Mario Tama/Getty Images

The construction of new residential housing units slowed last month, with homebuilders struggling amid 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 statement.