New-home production plummets after tax credit deadline

Single-family housing starts fall 17.2% in May

Housing starts fell 10 percent from April to May, to a seasonally adjusted annual pace of 593,000 homes per year — up 21.5 percent from a record low in January 2009 but far below the 2-million-homes-per-year pace seen during the housing boom, the Census Bureau reported today.

With the expiration of the federal homebuyer tax credit at the end of April, single-family housing starts fell even more dramatically — 17.2 percent from April to May — to a seasonally adjusted rate of 468,000 homes per year.