Home Building Explodes, Inflation Under Control
Trucking companies that haul building materials have encouraging news
Trucking companies that haul building materials have encouraging news.
New home starts rocketed in May, posting an 11.6 percent gain, the largest increase in almost seven years.
The U.S. Commerce Department also reported Tuesday that home starts for single family units posted a 9.6 percent increase, the biggest jump since July 1995, bringing total new home starts to 1.73 million units annually, up from a downwardly revised 1.55 million rate in April.
Good construction weather, increasing consumer confidence, rising employment, another dip in mortgage rates and falling construction material prices all contributed to the large gain, says Newport Senior Economist Jim Haughey.
“The May level is not sustainable even in an improving economy; starts will likely settle back to about the May building permit level of 1.674 million,” he says.
Haughey notes that improved housing starts are seen very early in the business cycle.
“Strong gains in housing at the beginning of an economic recovery usually means similar strong gains in manufacturing a few months later,” he says.
Also during May, building permits, a barometer of future homebuilding activity, increased 2.6%.
The biggest increase in home starts was seen in the Midwest and Northeast, where they increased 24% and 22.4%, respectively, while the West reported a 10% increase and the South posted a 6% gain, though it accounts for the biggest number of total new home starts.
Meantime, in a separate report, the Labor Department reported consumer prices were unchanged in May. However, the so-called “core rate,” which measures inflation, posted a 0.2% drop, down slightly from a 0.3% showing in April.
Helping to keep a lid on consumer prices was a 0.7% drop in energy prices, which increased 4.5% in April. Also food prices fell 0.2% while clothing prices declined 0.6%
Many analysts believe this new report on inflation will lead the Federal Reserve to keep interest rates unchanged when they meet next week.
More Fleet Management

What Trucking Events are Happening in 2026?
Looking for trucking-related conventions, expos, and other events? Heavy Duty Trucking has developed this list of national and larger regional trucking shows and events.
Read More →
Truckload Rates Keep Rising as Tight Capacity Fuels Freight Market Recovery
Spot and contract rates continued climbing in May and June, not because freight demand is surging, but because fewer trucks and drivers are available.
Read More →
What Geotab's New AI Connector Means for Fleets
Fleets can now ask their usual AI assistants questions about maintenance, safety, fuel use, and vehicle performance, using their live Geotab data, and take action on the answers without leaving their preferred AI tool.
Read More →
New C.H. Robinson Tool Opens Door to More Predictable Freight
BidBoardX lets carriers search, bid on, and secure committed freight opportunities through a single digital marketplace.
Read More →
New York City's Microhub Project is Delivering Results
Trucking, last-mile delivery companies, and environmental advocates like what they are seeing so far with New York's microhub program.
Read More →
Why Truck Detention Keeps Costing Fleets Time and Money
A 2024 ATRI study found detention affects nearly 40% of truckload stops and costs the industry more than $15 billion annually. Despite the toll on drivers, fleets, and supply chains, the problem remains stubbornly persistent.
Read More →
Time is Running Out to Apply for Exclusive HDT Event
Heavy Duty Trucking Exchange brings fleet managers and suppliers together for the deeper conversations that lead to ideas, partnerships, and solutions. Time is running out to apply for the September event.
Read More →
Amazon Launches Less-Than-Truckload Freight Offering for All Businesses
This launch is the latest addition to Amazon Supply Chain Services, a portfolio of supply chain capabilities from Amazon, including freight, distribution, fulfillment, and parcel shipping.
Read More →
Import Cargo Volume to See Year-Over-Year Gain Again in June, Then Remain Below 2025 Levels Into Fall
After July, the report predicts a weakening in import volume as consumer uncertainty remains high and the impact of increasing inflation takes its toll.
Read More →
AUCTION OF EQUITY INTEREST IN HEAVY HAUL TRUCKING COMPANY!!
Mark your calendar: June 30, 2026 (10:00 a.m. PDT). A 37.5% ownership interest in MagnaTrans, LLC, a California limited liability company doing business as Magna Transportation Group, will be sold in an in-person and online auction to the highest bidder or bidders under Article 9 of the Uniform Commercial Code. The Rancho Cucamonga-based heavy haul and over-dimensional trucking company operates across California, Oregon, and Arizona.
Read More →

