The US housing market is experiencing a prolonged slowdown, with new indicators showing a decline in home construction and building permits. Builders broke ground on fewer homes in May than at any point in the past five years.
The industry faces several challenges, including tariffs, deportations of immigrant workers, and high labor costs. Lennar, one of the nation’s largest homebuilders, reported weaker-than-expected quarterly earnings due to a soft housing market.
Housing starts fell almost 10% last month to an annualized pace of 1.3 million, while building permits dropped to an annualized rate of 898,000. The National Association of Home Builders said sentiment among builders has never been lower than its June level since 2012.
Economists warn that a slower economy could exacerbate the housing market downturn, which may be driven by higher mortgage rates and economic uncertainty. As the industry grapples with these challenges, it remains to be seen how builders will adapt to changing market conditions.
Source: https://www.axios.com/2025/06/18/trump-tariffs-deportations-housing-market