Steel Mills

Housing Starts Spike in May

Written by Laura Miller

June 20, 2023

Overall housing starts hit a 13-month high in May as construction of both single-family and multi-family homes spiked.

housing

Total housing starts were at a seasonally adjusted annual rate (SAAR) of 1.631 million units in May. This was a 22% rise from the month prior and a 6% increase year-on-year (YoY).

May’s SAAR of single-family housing starts jumped 19% month-on-month (MoM) to an 11-month high of 997,000 units. Multi-family housing starts were at a 13-month high of 634,000 units and showed a 27% MoM jump.

The National Association of Home Builders (NAHB) said the boost in single-family starts was due to strong demand, lean existing inventory, and improving supply chains.

“Despite elevated interest rates that make the cost of housing more expensive, the lack of existing home inventory in most markets is leading to increased demand for new construction,” said Alicia Huey, NAHB chairman.

Starts jumped MoM in most regions except for the Northeast, which saw a slowdown in activity.

“The May housing starts data and our latest builder confidence survey both point to a bottom forming for single-family residential construction earlier this year,” noted NAHB chief economist Robert Dietz.

23 6 June 20 Housing Starts Fig 1

By Laura Miller, laura@steelmarketupdate.com

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

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