Housing starts dropped to a 1.09 million-unit rate in May, well below market expectations. That follows downward revisions to April. Losses were broad-based. Multifamily starts were hit harder than single-family starts. We are seeing the realization of overbuilding in many of what were some of the fastest growing urban areas.
Single-family housing starts, while not as disappointing as multifamily, also plunged despite ongoing strength in demand.