New home construction in the U.S. plunged in August to a three-year low, according to data released on Tuesday, as high mortgage rates, increased cost of labor and the price of building homes took a toll on the industry.
A decrease in multifamily homes construction was a big factor in the decline as they slumped by more than one-quarter. But single-family homes also experienced a downturn, falling by more than 4 percent, pointing to an overall slowdown of the sector. An aerial view of homes in a housing development in the Chatsworth neighborhood of Los Angeles, California. New housing construction fell across the U.S. in August.The NAHB blamed the decline on ballooning mortgage rates despite high demand for new homes, making the industry pessimistic about the future as rates are unlikely to fall anytime soon.