FX.co ★ US Housing Starts Fall to Lowest Level Since 2020

In May 2025, housing starts in the United States experienced a significant 9.8% decline month-over-month, reaching a seasonally adjusted annual rate of 1.256 million units. This figure decreased from an upwardly revised figure of 1.392 million in April and fell short of market predictions, which had anticipated 1.36 million. This decline represents the lowest level seen since May 2020, a period early in the post-COVID-19 era. The downturn can be attributed to high mortgage rates and an oversupply of available homes, which negatively impacted builder sentiment and construction activities. Specifically, starts for multi-family properties with five or more units dropped dramatically by 30.4% to 316,000 units, while single-family home starts—the predominant category in homebuilding—inched up by 0.4% to 924,000 units. Regionally, notable declines in housing starts were observed in the Northeast (-40.0% to 105,000 units), Midwest (-10.2% to 184,000 units), and South (-10.5% to 693,000 units). Conversely, the West experienced a 15.1% increase, rising to 274,000 units.