The Commerce Department’s Census Bureau reported housing starts fell almost 10% last month to an annualized pace of 1.3 million—well below the rate that economists expected. Builders broke ground on home construction in May at the slowest pace in five years. The issuance of building permits also hit a five-year low in June and sentiment among homebuilders dropped to the lowest level since June 2022. In certain parts of the county, there is too much inventory compared to demand. The National Association of Homebuilders warned that homebuyers “are increasingly on the sidelines due to elevated mortgage rates and tariff and economic uncertainty.”
