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Indicators

New Home Construction Falls to Five-Year Low

New homes under construction in Aldie, Virginia, in 2024.

Photographer: Nathan Howard/Bloomberg

Takeaways by Bloomberg AI

New US residential construction declined in May to the slowest pace since the onset of the pandemic as an elevated inventory of homes for sale and high mortgage rates sapped the motivation to build.

Housing starts decreased 9.8% to an annualized rate of 1.26 million homes last month, according to government figures released Wednesday. The figure was below all estimates in a Bloomberg survey of economists.