Housing starts surged 21.7% in May to a seasonally adjusted annual rate of 1.631 million.
The rate was up 5.7% compared with May 2022.
The 291,000-unit jump in housing starts was the most recorded since January 1990, Reuters reported.
“Mirroring rising builder sentiment, single-family permits and starts increased in May as builders boosted production to meet unmet demand,” stated Alicia Huey, chairman of the National Association of Home Builders. “Despite elevated interest rates that make the cost of housing more expensive, the lack of existing home inventory in most markets is leading to increased demand for new construction.”
NAHB’s builder confidence survey levels also rose five points in May, becoming “positive” for the first time in eleven months.
Regionally, month-over-month, housing starts increased 66.9% in the Midwest, 20.3% in the South and 16.4% in the West. Housing starts declined 18.7% in the Northeast in May.
Building permits rose 5.2% above April to an adjusted rate of 1.491 million, but remained 12.7% below May 2022 building permit rates.
The full U.S. Census Bureau and U.S. Department of Housing and Urban Development report can be found here.
