Construction of new homes in the U.S. slowed by much more than expected in April as homebuilders held back on projects because prices of materials and labor have been rising rapidly.
Private homes were started at a seasonally adjusted, annualized rate of 1.569, a 9.5 percent decline from March, Commerce Department showed Tuesday. Economists had expected a rate of 1.705 million.
The decline was even sharper in the single‐family home market, where the housing shortage is most acutely felt. Single-family housing starts in April fell to a rate of 1,087,000, 13.4 percent below the March rate.
The annual declines are now not useful measures of the health of the market because they reflect a near shutdown of construction in the spring of 2020 due to pandemic lockdowns. Compared with last April, housing starts are up 69 percent.
