Home builders and buyers face bleak picture in the spring. Weak housing starts illustrate why.

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Home builders and buyers face bleak picture in the spring. Weak housing starts illustrate why.

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Home builders and buyers face bleak picture in the spring. Weak housing starts illustrate why.

//house-home.news-articles.net/content/2025/05/1 .. e-spring-weak-housing-starts-illustrate-why.html

Published in House and Home on Friday, May 16th 2025 at 9:29 GMT by MarketWatch

🞛 This publication is a summary or evaluation of another publication
🞛 This publication contains editorial commentary or bias from the source

Spring is usually the time when construction companies build more homes in anticipation of rising sales. But for the third year in a row the picture in the housing market is bleak.

2025-05-16 312 x 156 / 151245 Bytes

The U.S. housing market is facing significant challenges as indicated by a sharp decline in housing starts, which fell 14.7% in March to a seasonally adjusted annual rate of 1.32 million units, marking the lowest level since June 2020. This downturn is attributed to high mortgage rates, elevated construction costs, and ongoing supply-chain issues, which together are deterring both builders and potential homebuyers. The Commerce Department's report highlighted a 17.2% drop in single-family housing starts, while multi-family starts also decreased by 10.5%. The situation is compounded by a persistent shortage of existing homes for sale, pushing prices up and further straining affordability. Analysts express concern that without intervention, the housing market could face prolonged weakness, impacting the broader economy.

Read the Full MarketWatch Article at:
[ https://www.marketwatch.com/story/home-builders-and-buyers-face-bleak-picture-weak-housing-starts-illustrate-the-problem-e502967f ]