by May building activity declined compared with last year in 3 core segments
WASHINGTON — The market for newly built homes showed continued weakness in May as building permits, housing starts and housing completions were all below last year’s levels.
Figures from the U.S. Department of Housing and Urban Development showed building permits had the lowest slowdown in activity, falling just .2% below the May 2025 rate of 1,416,000 to 1,413,000. They fell .7% from the revised April rate of 1,423,000.
Of these, there were 886,000 single-family permits issued, or 62.7% of the total, up .6% from the revised April total of 881,000.
Housing starts faltered even more, falling 8.7% to 1,177,000 from 1,289,000 in May 2025. They also fell 15.4% from a revised April estimate of 1,392,000. Single-family starts were 882,000, or 74.9% of the total, down 1.9% from a revised total of 899,000 in April.
Housing completions totaled 1,313,000, down 14.2% from 1,530,000 in May 2025. They also were down 8.1% from a revised April estimate of 1,429,000. Single-family housing completions totaled 872,000, or 64.4% of the total, and were down 1.6% from a revised April rate of 886,000.
The balances in each scenario are for buildings with five or more units.
The numbers, particularly housing completions, likely impacted furniture store sales in the month of May, which were down 1.2% from May 2025 but up 1% from April. Many homebuyers may begin their shopping earlier but likely don’t make their final purchases until their new house is move-in ready. Some may even delay these type of major expenditures as they are also facing other expenses such as a new washer and dryer, a new refrigerator, plus moving costs.
The impact housing starts have on future furniture purchases depends on the size and type of home (single family versus a smaller townhouse or condo) and how quickly those units are completed. Estimates vary from nine to 21 months or longer, again relative to the type of house.
Activity by region for the month of May was as follows:
+ In the Northeast, building permits rose 7.2% from May 2025 and rose 3.1% from April. In the Midwest, they declined 10.6% from May 2025 and declined 18.1% from April. In the South, they rose .5% from May 2025 and rose 1.6% from April. In the West, they rose 2.2% from May 2025 and rose 5.5% from April.
+ In the Northeast, housing starts were up 18.3% from May 2025 and were down 26.8% from April. In the Midwest they were up 5.9% from May 2025 and were up 3.7% from April, and in the South they were down 15.4% from May 2025 and down 17% from April. In the West, they were down 11.4% from May 2025 and down 17.2% from April.
+ In the Northeast, housing completions were down 18.5% from May 2025 and were down 20% from April. In the Midwest, they were up 13.9% from May 2025 and up 29.7% from April, and in the South, they were down 12.5% from May 2025 and down 13.5% from April. In the West, they were down 28.4% from May 2025 and were down 7.2% from April.
The regional activity helps us understand which markets are seeing the most growth and which ones are seeing the least. However, it makes sense for retailers to also consider what is happening in their specific states, their counties and their cities or towns. As with existing home sales, new housing construction typically generates furniture sales activity so knowing what types of houses are being built will undoubtedly help retailers plan for some of the types of products to put on their respective sales floors.
