Market commentator The Kobeissi Letter said on Thursday that U.S. housing starts, which track when construction officially begins on new residential buildings, fell sharply in May, signaling a slowdown in residential construction as both single-family and multifamily building activity weakened.
Kobeissi said housing starts dropped 15.4% month-over-month to a seasonally adjusted annual rate of 1.18 million units, the lowest level since May 2020. April's reading was also revised lower by 73,000 units from the previously reported 1.39 million.
The latest reading also came in well below the five-year average of 1.44 million units, highlighting the broader slowdown in construction activity.
"Residential construction activity is rapidly slowing," Kobeissi said.
Multifamily Construction Drives Decline
