Housing Starts See Biggest Monthly Gain Since 1990, but Trend Unsustainable
New U.S. housing starts registered the biggest monthly increase in more than 30 years in May, but some experts raised doubts about whether the trend is sustainable.
“Privately owned housing starts in May were at a seasonally adjusted annual rate of 1,631,000. This is 21.7 percent above the revised April estimate of 1,340,000,” according to a June 20 press release by the U.S. Census Bureau. The increase of 291,000 housing starts between April and May 2023 is the largest monthly increase since 1990. Moreover, the 21.7 percent gain in May was the largest percentage increase since October 2016.
Region-wise, housing starts rose the most in the Midwest, jumping by 66.9 percent from April to May. The South saw an increase of 20.3 percent while the West registered a 16.4 percent gain. Housing starts fell by 18.7 percent on a monthly basis in the Northeast….