Story perspectives

US Housing Starts Drop 15% in May, Multifamily Plummets 40%

6/17/2026

Summary

Story summary

U.S. housing starts fell 15.4% in May 2026 to 1.18 million units, the lowest since May 2020.
Multifamily starts plunged 40.2% to 295,000 units while single-family starts slipped 1.9% to 882,000 units.
Building permits fell 0.7% to 1.41 million units; single-family permits rose 0.6% to 886,000 while multifamily permits dropped 2.8% to 527,000.
Bill Owens, chairman of the National Association of Home Builders, said high mortgage rates and affordability challenges drove slowdown.

History

Historical Context

2008’s housing collapse spurred the Housing and Economic Recovery Act, which let the FHA guarantee up to $300 billion of mortgages and placed Fannie Mae and Freddie Mac in conservatorship. Today the Association of Home Builders, chaired by Bill Owens, blames high mortgage rates for a 15.4% drop in May 2026 starts, warning a repeat of the post-2008 slowdown.

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Story summary

U.S. housing starts fell 15.4% in May 2026 to 1.18 million units, the lowest since May 2020.
Multifamily starts plunged 40.2% to 295,000 units while single-family starts slipped 1.9% to 882,000 units.
Building permits fell 0.7% to 1.41 million units; single-family permits rose 0.6% to 886,000 while multifamily permits dropped 2.8% to 527,000.
Bill Owens, chairman of the National Association of Home Builders, said high mortgage rates and affordability challenges drove slowdown.

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