Housing Starts fell -15.4% in the latest reading following an -8.5% decline in April. After remaining in a relatively narrow range for the last few years, this release signals a major break to a new 6-year low.
Housing Starts are an important measure of housing market health, as they indicate the future supply of homes that will be available to buyers. In addition, a decrease of this magnitude signals a likely decline in construction and manufacturing jobs and a further slowdown in housing activity across the board.
The housing market has been largely stagnant for the last few years and this recent drop in Starts warns that the sector could be heading for further trouble.
