FX.co ★ US Building Permits Lowest since June 2020

In May 2025, building permits across the United States experienced a 2% decline, reaching a seasonally adjusted annual rate of 1.393 million, marking the lowest level since June 2020. This figure fell short of market predictions, which had anticipated 1.43 million permits. The decrease is attributed to elevated mortgage rates and tariffs on imported materials, which continue to suppress demand. Permits for single-family homes dropped by 2.7%, totaling 898,000, whereas permits for buildings with five or more units saw a modest increase of 1.4%, reaching an annual rate of 444,000. Looking at the regional variance, permits saw a downturn in the Northeast, falling by 8.8% to 124,000; in the South, declining by 2.5% to 743,000; and in the West, decreasing by 5.2% to 313,000. Conversely, the Midwest experienced a 9.8% rise, totaling 213,000 permits.