Housing Starts Weaken Amid Gloomy Builder Sentiment

Home-building lost ground in the U.S. last month as tariffs and labor issues bit into supply and high interest rates dragged on demand. Here are the main takeaways: from the Commerce Department's new report:
Housing starts, a gauge of new residential construction, dropped nearly 10% in May to 1.26 million, according to a Commerce Department report Wednesday.
That was down from a revised 1.39 million in April and was well below the expectations of economists surveyed by The Wall Street Journal. Starts were 4.6% lower on the year.
Residential permits also fell by more than expected, to 1.39 million.
President Trump's tariffs are hitting the construction sector, with builders reporting higher costs for materials, and many forced to pile on discounts to lure wary buyers. A crackdown on immigrant labor is also raising costs.
Home-builder sentiment sunk to its lowest since 2022 and its third-lowest since 2012, the National Association of Home Builders said this week.
High interest rates also are keeping mortgage rates at a level that dissuades many Americans to buy a house or move.
🏠 Dig deeper: Why Housing's Woes Are a Leading Indicator

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