The numbers: Construction of new homes fell 9.8% in May, as builders pulled back amid waning demand from home buyers. Housing starts fell to a 1.26 million annual pace from 1.39 million the , The number of housing units that started construction in May fell to the lowest level since 2020 as the sector battles headwinds blown by high interest rates. Housing construction dropped 9.8 perce…, Economic uncertainty and higher mortgage rates are just some of the factors forcing home builders to reduce home prices for would-be buyers as construction permits and housing starts drop to pandemic-era lows., Single-family housing starts face uninspired end to 2025 Builder trade group forecasting drop in construction Single-family housing starts are down from a year ago, and homebuilders are losing confidence in the market. (Mitchell Birnbaum/Homes.com), US housing starts dropped sharply by 9.8% month-over-month in May 2025 to a seasonally adjusted annual rate of 1.256 million units, down from an upwardly revised 1.392 million in April and well below market expectations of 1.36 million., Housing starts decreased 9.8% to an annualized rate of 1.26 million homes last month, according to government figures released Wednesday..