The rate of new home construction slowed in May, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. Overall, housing starts – including multi-family construction – fell sharply, dropping 15.4 percent month-over-month. Construction of single-family homes, however, was less volatile. In fact, single-family housing starts were down just 1.9 percent, while permits for future construction were slightly higher from the month before. Bill Owens, NAHB’s chairman, says buyers are feeling cautious. “Elevated mortgage rates, affordability challenges, and cautious buyers continue to weigh on demand for new homes,” Owens said. “Builders are offering incentives and cutting prices, but difficult market conditions are still limiting sustained momentum for new construction.” Incentives and price cuts are good news for home shoppers, though, especially in areas where construction boomed over the past few years and there are deals to be found. (source)
