Nationwide housing starts fell 11.1 percent to a seasonally adjusted annual rate of 1.036 million units in May from an April reading of 1.65 million, but remain 5.1 percent above the May 2014 rate of 986,000, according to the U.S. Census Bureau.
Single-family housing starts in May were at a rate of 680,000, which is 5.4 percent below April’s rate of 719,000.
"After a strong April, some readjustment in housing production in May was expected," said NAHB Chief Economist David Crowe in a statement.
Meanwhile, permits for privately-owned housing units in May increased 11.8 percent since April to a seasonally adjusted annual rate of 1.28 million. This is 25.4 percent higher than the 1.02 million rate in May 2014.
"The starts and permits figures for the second quarter of 2015 are shaping up to be stronger than the first,” Crowe said. “This upward trajectory is in line with the recently released NAHB/Wells Fargo HMI, which found growing builder confidence in the market."
