US housing starts fell sharply in May to the lowest level since May 2020, signaling a rapid slowdown in residential construction activity as both single-family and multifamily building weakened. Market commentator The Kobeissi Letter reported that housing starts dropped 15.4% month-over-month to a seasonally adjusted annual rate of 1.18 million units. This reading is well below the five-year average of 1.44 million units, highlighting the broader deceleration in the sector.

The data, sourced from the Monthly New Residential Construction report jointly released by the U.S. Census Bureau and U.S. Department of Housing and Urban Development, also included a downward revision to April's figures. April's reading was revised lower by 73,000 units from the previously reported 1.39 million units.

Multifamily Construction Drives Decline

The most significant drag on the headline figure came from multifamily construction. Housing starts for buildings with five units or more plummeted 40.2% month over month to 284,000 units annualized, marking the lowest level since November 2024. Single-family housing starts also declined, falling 1.9% to 882,000 units, the lowest level since September 2025.

Key Housing Metrics

Building permits, a key indicator of future construction activity, slipped 0.7% to 1.413 million, suggesting builders may remain cautious in the coming months. Housing completions also fell 8.1% month over month and 14.2% year over year, signaling broader weakness across the housing market.

Market Context

Elevated mortgage rates and affordability pressures continue to weigh on buyer demand. The Kobeissi Letter noted that "residential construction activity is rapidly slowing." The total housing starts figure of 1.177 million represents an 8.7% decrease from the same period a year earlier.

Marjorie Taylor Greene disclosed on Wednesday that she traveled to Mexico for stem cell therapy, citing high U.S. healthcare costs and lack of regulatory approval as primary reasons. The former Congresswoman stated in a post on X that she does not have health insurance and highlighted that rising costs are driving Americans to seek medical treatments abroad. Greene noted that the specific therapy she received is not approved by the U.S. Food and Drug Administration, which contributed to her decision to go overseas.

Greene provided specific figures to illustrate the financial burden of healthcare in the United States. She stated that a family of four can spend up to $27,000 annually on health insurance, with additional deductibles ranging from $7,000 to $10,000. "Health insurance is absurdly expensive," Greene said, emphasizing the financial strain on households.

Her comments align with new data from Gallup and West Health indicating that healthcare affordability in the U.S. has fallen to its lowest level in five years. The survey revealed that only 49% of U.S. adults could consistently afford quality healthcare and prescription drugs in 2025, a decline from 61% in 2022. The data further showed that approximately 2.8 million more Americans struggled to afford healthcare in 2025 compared to the previous year.

The Gallup survey identified specific demographics facing the most significant affordability challenges, including young adults, women, Black and Hispanic Americans, and individuals with chronic or mental health conditions. Concern regarding future costs is also prevalent, with 51% of Americans expressing worry about paying for healthcare services and 42% concerned about affording prescription drugs.

Costs are projected to continue rising for insured individuals as well. Employer health benefit costs are expected to increase 6.7% in 2026 to at least $18,500 per employee, marking the largest annual increase in 15 years. Large employers anticipate raising deductibles, copays, and out-of-pocket costs, while prescription drug benefit costs are projected to rise around 9% in 2026.