Residential building starts fell 2.1% from April to May to a seasonally adjusted annual rate of $373 billion, according to Dodge Construction Network. Single-family starts decreased 1.0% over the month, while multifamily starts fell 3.7%.
Year-to-date through May, residential starts were down 4.9%, with single-family starts off 9.4% and multifamily starts up 3.6%. For the 12 months ending May 2026, single-family starts fell 13.5% from the prior 12-month period.
Total construction starts surged 34.1% in May to a seasonally adjusted annual rate of $1.78 trillion, but the increase was driven by large nonresidential and infrastructure megaprojects rather than housing.
"Megaproject starts within healthcare, manufacturing, utilities and data centers drove sizeable gains across the month," Dodge Construction Network Director of Economic Research Sarah Martin said. "Outside of this activity, however, pockets of weakness across institutional construction, warehouses and residential construction remain."
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