Nationwide housing production fell by 6.5 percent in May to a seasonally adjusted annual rate of just over 1 million units, according to new figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Single-family housing starts dropped 5.9 percent to a seasonally adjusted annual rate of 625,000 units. Multifamily housing starts decreased 7.6 percent to 376,000.
"The dip in single-family production shows builders continue to move carefully in adding inventory," said Kevin Kelly, chairman of the National Association of Home Builders (NAHB). "They are also facing supply chain issues, such as access to lots and labor."
While that number is discouraging, there was an encouraging indicator as well. Single-family permits, typically a bellwether of future building activity, increased 3.7 percent.
"The modest increase is evidence that builders expect continued release of pent-up demand and a gradual expansion of the housing market," said NAHB Chief Economist David Crowe.
Indeed, the NAHB is still forecasting a 12 percent increase in total housing starts for the year.
