Ohio Housing Construction Rises Amid National Slowdown
Ohio and the Midwest posted modest construction gains in May even as U.S. housing starts hit their lowest point since the pandemic, new Census Bureau data shows.
COLUMBUS, OHIO — Housing construction across the United States fell to its lowest level since the early months of the COVID-19 pandemic in May, according to data released Tuesday by the U.S. Census Bureau. However, Ohio and the broader Midwest showed resilience against the national trend.
Nationally, housing starts dropped to an annual rate of 1.17 million units, the weakest pace since April 2020 and an 8.5% decline compared to May 2025. Builders have become cautious as rising material costs and higher financing expenses affect project viability, according to Stateline, which first reported the figures.
Midwest Holds Steady While South and West Decline
The Midwest recorded a 6% increase in housing starts compared to May 2025, standing out as one of the few positive areas in the national picture. The Northeast posted an even sharper rebound, with starts climbing 19% over the same period.
In contrast, the South saw starts fall 15% year over year, while the West posted an 11% decline. These two regions, which have led much of the nation’s post-pandemic construction boom, are now experiencing the sharpest pullback.
Annual home completion rates also fell nationwide, dropping 14.2% from May 2025 to approximately 1.3 million units — the lowest completion rate recorded since January 2022.
Permits Show Mixed Picture for New Construction
New building permits held relatively steady nationally at approximately 1.4 million, with apartment unit permits trending upward even as single-family home permits declined. However, the Midwest showed a concerning divergence: new apartment permits fell 26% in the region, while single-family home permits dropped 7% in the West.
The permit data suggests that while some developers are still moving forward with multifamily projects nationally, the pipeline for new housing across the Midwest could thin out in the coming months if the trend continues.
Housing Shortage Concerns Mount
The slowdown threatens to reverse recent progress states have made toward closing housing supply gaps. A Stateline report published in May 2026 found that new construction had reduced housing shortages in most states, gains that analysts now worry could stall if builder confidence continues to erode.
Homebuilder confidence has dropped to 35 in June, falling below expectations, according to IndexBox data cited by Stateline. Industry observers attribute the decline primarily to uncertainty over tariff-driven material cost increases and persistently elevated mortgage financing rates.
The U.S. Census Bureau releases monthly housing construction data as part of its New Residential Construction report. The May figures were announced Tuesday, June 17, 2026. Stateline reporter Tim Henderson contributed to this report and can be reached at thenderson@stateline.org.
