Seasonally Adjusted Rate of Permits Reaches A Near 5-Year Low

[ST. PAUL, MINN.]  The seasonally adjusted annual rate of housing units authorized in the United States fell by 2.0 percent in May, according to the United States Census Bureau’s Building Permit Survey report released this morning. The seasonally adjusted annual rate of new privately owned units for May was 1.393 million, reaching its lowest point since June 2020. Single-family permits down 2.7. percent and multi-family permits down 1.4 percent. Year-over-year, total permits were down 1.0 percent, with single-family down 6.4 percent and multi-family up 13.0 percent.

“The continued slide in permits underscores the need for policymakers at all levels to reevaluate their housing policies to focus on affordability and abundance,” said Nick Erickson, executive director of Housing Affordability Institute, a housing policy think tank. “High rates and the high cost of housing are pricing out homebuyers at a time when the country desperately needs more housing.”

MONTHLY ACTIVITY

Building Permits:

IIn May, the number of privately-owned housing units approved for construction—measured at a seasonally adjusted annual pace—came in at 1.393 million. That marks a 2.0% drop from April’s revised total of 1.422 million and a 1.0% decrease compared to May 2024’s figure of 1.407 million. Permits for single-family homes were issued at a rate of 898,000, down 2.7% from April. Meanwhile, permits for buildings with five or more units reached 444,000 for the month.

Housing Starts:

New residential construction in May slowed to an annual rate of 1.256 million, reflecting a 9.8% dip from April’s revised estimate of 1.392 million. Compared to the same month last year, starts were down 4.6%. However, single-family home construction edged up slightly to 924,000—just above April’s rate of 920,000. Multifamily starts (in buildings with five or more units) were at 316,000.

Housing Competions:

Completed housing units in May were at a seasonally adjusted annual rate of 1.526 million, a 5.4% increase over April’s revised total of 1.448 million. Still, that’s 2.2% below the pace set in May 2024. Single-family home completions climbed to 1.027 million, up 8.1% from April. For larger multifamily buildings, completions were reported at a rate of 487,000.

Source: United States Census Bureau’s Building Permit Survey