U.S. housing starts fell sharply in May as multifamily construction slowed, while building permits edged down and housing completions declined month-to-month.

The latest government data showed a monthly decline in overall housing starts in May as multifamily construction activity retreated, while single-family starts were nearly flat.

The U.S. Census Bureau released its Monthly New Residential Construction report for May on June 16.

Housing Starts

Privately-owned housing starts in May were at a seasonally-adjusted annual rate of 1.18 million, down 15.4% from April’s revised estimate and down 8.7% year-over-year. Economists polled by the Wall Street Journal had expected a reading of 1.43 million and 2.4% monthly decline. April’s figure was sharply revised to an 8.5% decline from an initial -2.8% estimate.

May’s figure was its lowest since May 2020 during the height of COVID-19 lockdowns.

Single-family housing starts were at a rate of 882,000, down 1.9% from April’s revised figure. Multifamily starts — buildings with five units or more — decreased to a rate of 284,000.

Building Permits

Privately-owned housing units authorized by building permits were at a seasonally-adjusted annual rate of 1.41 million in May, down 0.7% from April’s revised rate and down 0.2% year-over-year. Economists polled by the WSJ expected a reading of 1.42 million in May.

Single-family authorizations were at a rate of 886,000, up 0.6% from April’s revised figure. Authorizations for units in buildings with five units or more came in at 474,000.

Housing Completions

Privately-owned housing completions in May were at a seasonally-adjusted annual rate of 1.31 million, down 8.1% from April’s revised estimate and down 14.2% year-over-year.

Single-family housing completions were at a rate of 872,000, down 1.6% from April’s revised rate, while completions for buildings with five units or more were at 426,000.