US home construction experienced a significant decline in May, falling 15.4% according to newly released federal data. This drop brings the annualized rate of housing starts to 1.18 million, marking the lowest level since 2020. The decrease indicates a considerable slowdown in the housing market, potentially influenced by rising mortgage rates and persistent high prices. Single-family home construction saw a particularly sharp decline, falling 11.8% in the month. Building permits for future homes also decreased, suggesting the slowdown may continue in the coming months. Economists are closely watching these figures as an indicator of broader economic health, as the housing sector is a key component of overall growth. The report highlights increasing challenges for prospective homebuyers and builders alike.