Housing starts sink to pandemic levels as builders worry about inflation

Housing starts in May fell to pandemic levels, reaching an annual rate of 1.17 million, an 8.5% drop since May 2025. Builder confidence has declined due to higher material and financing costs, with significant declines in the South and West, while the Northeast and Midwest saw increases. Housing completions also dropped 14.2% from May 2025, and new permits showed mixed results across regions.