New home construction in the U.S. is slowing, with residential building permits 19.4% below pre-pandemic levels, especially in Sun Belt cities that led the pandemic boom. Permits have declined for 44 months straight, with major drops in Austin, San Antonio, and Orlando. Construction costs, high mortgage rates, and affordability challenges hinder builders. Some coastal and Midwest cities see permit increases, but overall new home completions are falling, with smaller homes being built. The U.S. faces a 4.7 million housing unit deficit amid ongoing supply shortages.

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