US single-family housing starts, building permits fell in April

Reuters

Fri, May 16, 2025, 5:40 AM 1 min read

WASHINGTON (Reuters) -U.S. single-family homebuilding fell successful April arsenic tariffs connected imported materials and precocious owe rates remained large obstacles for the lodging market.

Single-family lodging starts, which relationship for the bulk of homebuilding, dropped 2.1% to a seasonally adjusted yearly complaint of 927,000 units past month, the Commerce Department's Census Bureau said connected Friday.

President Donald Trump's assertive and erratic tariffs, including duties connected lumber and steel, person near builders reeling. The United States and China de-escalated their commercialized warfare implicit the weekend, but uncertainty remains implicit what happens aft the 90-day truce they agreed on. There is besides nary clarity connected the destiny of country-specific duties which were delayed until July.

A National Association of Home Builders survey connected Thursday showed sentiment among single-family homebuilders plunged to a 1-1/2-year debased successful May, with 78% of builders reporting "difficulties pricing their homes precocious owed to uncertainty astir worldly prices."

There is besides a glut of unsold caller homes, with inventory astatine levels past seen successful precocious 2007.

Permits for aboriginal operation of single-family lodging declined 5.1% to a complaint of 922,000 units successful March. Residential investment, which includes homebuilding, rebounded successful 2024 aft steep declines successful the anterior 2 years caused by a surge successful owe rates. It grew astatine a mean gait successful the archetypal 4th of 2025.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Nick Zieminski)