U.S. Housing Starts Hit Lowest Level Since Pandemic Six Years Ago

May housing starts in the U.S. fell to their lowest level since the pandemic disrupted construction six years ago.

The U.S. Census Bureau reported an annualized rate of 1.17 million housing starts in May, marking an 8.5% decline since May 2025. This downturn threatens to worsen housing shortages and stall progress toward meeting demand. Builder confidence has notably declined amid rising material and financing costs, compounding challenges for the sector.

Regionally, the South experienced a 15% drop and the West an 11% decrease in housing starts, while the Northeast and Midwest saw increases of 19% and 6%, respectively. Meanwhile, annual housing completions fell 14.2% from May 2025 to about 1.3 million units, the lowest since January 2022. New permits totaled roughly 1.4 million, with apartment permits rising overall but dropping 26% in the Midwest, and single-family house permits down 7% in the West.

Although no forward-looking timeline was provided, these figures underscore a significant structural shift in the housing market.

Montana businesses might observe similar pressures if higher material and financing costs persist, given the state’s reliance on new construction to accommodate growth. Regional disparities in starts and permits elsewhere suggest that local market conditions and supply chain factors could influence Montana’s housing outlook, potentially affecting construction-related industries and workforce availability.

Housing starts sink to pandemic levels as builders face inflation
By The Missoula Current News – Daily News in Missoula Montana