New construction remains below levels needed to address the nation’s housing shortage.

[ST. PAUL, MINN.]  Permits for new housing declined slightly in May, according to the U.S. Census Bureau’s Building Permit Survey data released this morning. In May, the number of units permitted was at a seasonally adjusted annual rate of 1.413 million units, down 0.7 percent from April and 0.2 percent below May 2025’s rate of 1.416 million units. Single-family permits increased 0.6 percent compared to April, while multi-family permits in buildings with five or more units declined to an annual rate of 474,000 units. Year-over-year, single-family permits are down 1.8 percent while multi-family permits are up 3.0 percent.

“The decline in new housing construction over the past several years is one of the most underreported stories in housing,” said Nick Erickson, executive director of Housing Affordability Institute. “America cannot solve its affordability crisis by building fewer homes. Yet construction activity remains below the levels needed to meet demand. Expanding housing supply will require broad-based policy reforms, beginning with local zoning and land-use regulations that constrain new development.”

ACTIVITY: MAY 2026

Building Permits

Privately owned housing units authorized by building permits were issued at a seasonally adjusted annual rate of 1.413 million in May, down 0.7% from the revised April pace of 1.423 million and 0.2% lower than the 1.416 million rate recorded in May 2025. Single-family permits increased slightly to an annual rate of 886,000, up 0.6% from April’s revised total of 881,000. Permits for multifamily buildings with five or more units were issued at an annual rate of 474,000.

Housing Starts

Housing starts were reported at a seasonally adjusted annual rate of 1.177 million in May. That was 15.4% below the revised April rate of 1.392 million and 8.7% lower than the 1.289 million rate from May 2025. Single-family starts declined 1.9% from April to an annual rate of 882,000. Starts in multifamily buildings containing five or more units were recorded at an annual rate of 284,000.

Housing Completions

Housing completions reached a seasonally adjusted annual rate of 1.313 million in May, a decrease of 8.1% from the revised April rate of 1.429 million and 14.2% below the level reported in May 2025. Single-family completions fell 1.6% from April to an annual rate of 872,000. Completions in multifamily buildings with five or more units were at an annual rate of 426,000.

Source: United States Census Bureau’s Building Permit Survey