June 19, 2017
The Commerce Department reported that housing starts dropped in May, as homebuilders slowed the pace of construction for the third straight month. Starts fell 5.5% last month to a seasonally adjusted annual rate of 1.09 million units.
That follows a decline in starts of 2.7% in April and a 7.7% decline in March. Home construction is still 3.2% higher compared to the previous year, though it still isn’t making much of a dent in the dwindling supply of homes.
There’s optimism among homebuilders about sales prospects, though construction hasn’t kept pace with buyer demand, and there’s a dearth of properties for sale on the market. In fact, for roughly the past two years, the country has experienced continued declines in existing homes for sale.
Building permits declined 4.9% nationwide, to 1.17 million.
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