US new home construction improved in April after the downfalls of last year

Posted on May 22, 2023   |  

New home construction is increasing as homeowners with below-present mortgage rates loans are keeping the supply of existing homes for sale at a very low level. 

In April, single-family starts grew by 1.6% to an 846,000 seasonally adjusted annual rate but remained 28.1% lower than a year ago. 

Single-family permits rose to 855,000 units, but are down 21.2% from a year ago.

The multifamily starts grew annually by 3.2% to 555,000 but multifamily permits decreased by 7.7% to an annualized 561,000 pace. 

Multifamily permits fell annually by 23%, showing signs of declines in apartment construction due to a tighter lending environment.

In April, consumer prices saw the smallest year-over-year gain since April 2021, marking a 10th straight month of slowdown and the first time rate drop of below 5% in 2 years.