U.S. Multifamily Construction Starts Plunged 40.2% in May

On June 16 the U.S. Department of Housing and Urban Development and the U.S. Census Bureau released a report showing all U.S. housing starts down and especially driven by a 40.2% plunge in May for multifamily construction, which includes apartment buildings and condos. This sector is down 14.2% compared with May 2025. U.S. housing starts in general fell 15.4% in May and are down 8.7% compared with May 2025. Single-family construction starts are down 6.7% compared with May 2025. Home builders are blaming continued high interest rates, rising costs for building materials, home buyers who are nervous about the economy, and increased labor shortages, due to immigration crackdowns. Builders are offering incentives and cutting prices to attract new customers.