US housing starts decline on drop in single-family homes
New residential construction decreased 2.8% last month to an annualised rate of 1.47 million homes
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[NEW YORK] US housing starts declined in April as construction of single-family homes dropped by the most in nearly a year, suggesting builders are growing cautious amid higher mortgage rates.
New residential construction decreased 2.8 per cent last month to an annualised rate of 1.47 million homes, according to government figures released on Thursday (May 21).
Starts of single-family homes declined 9 per cent, the most since August, to an annualised 930,000 pace. Multifamily housing starts, however, rose more than 10 per cent to the highest level since May 2023.
The report also showed single-family permits, a leading indicator of future construction, fell 2.6 per cent to the lowest level since August.
The figures suggest home builders remain focused on working off a still-elevated inventory of new properties. While sales have increased in recent months, most were homes that were already under construction or finished.
Numerous challenges remain for a sustained pickup in home building, including rising mortgage rates, flagging consumer confidence and stretched household budgets.
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The new residential construction data are volatile, and the government report showed 90 per cent confidence that the monthly change ranged from a 13.8 per cent drop to an 8.2 per cent gain.
Meanwhile, the National Association of Realtors reported on Tuesday that pending sales of previously owned US homes rose for a third straight month in April. REUTERS
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