Housing starts rise; Charter plans to buy Cox Communications; Consumer confidence erodes

U.S. residential construction starts rose 1.6% in April from the prior month, though the latest data showed new building permits declined 4.7% at a time of widespread uncertainty among builders and potential buyers.

The Commerce Department said single-family and multifamily units were started at a seasonally adjusted annual rate of about 1.33 million, falling 1.7% below the year-earlier level of 1.39 million. Single-family unit starts declined 2.1% for the month, while starts for buildings with five or more units increased 11.1%.

The latest numbers showed multifamily project starts rising nearly 29% from April 2024, while single-family development starts declined 12%. “Economic uncertainty, especially around interest rates and inflation, continues to impact both builder financing costs and buyers’ ability to qualify,” Danushka Nanayakkara-Skillington, assistant vice president for forecasting and analysis at the National Association of Home Builders, said in a statement.

“However, recent developments on the tariff front concerning the United Kingdom and China along with major tax legislation advancing in Congress should provide a boost to housing demand and positive momentum for the economy,” she said.

The trade group earlier reported that builder confidence fell sharply in May, stemming from elevated interest rates and uncertainties about trade tariff effects on consumer spending and construction material costs. An NAHB survey of builders found 34% reduced home prices during May, up from 29% in April and the highest level since December 2023, when 36% cut prices.

Charter Communications plans to acquire and merge with rival Cox Communications in a $21.9 billion deal that would bring together two of the nation’s largest cable and broadband operators at a challenging time for the industry.

Subject to federal regulatory approvals, the combined company would be called Cox Communications and serve nearly 38 million customers nationwide. The deal comes as traditional cable and broadband providers are facing increasing competition from wireless service companies like Verizon and T-Mobile after years of industry consolidation.

The companies said they are expecting $500 million in annual cost savings within three years after the merger deal closes around mid-2026. It was not immediately clear what that would mean to the two companies’ workforces or real estate footprints.

CoStar data showed Stamford, Connecticut-based Charter employs about 102,000 at nearly 1,000 locations in the U.S. and United Kingdom, primarily in office and retail operations. Cox Communications is the largest division of Atlanta-based Cox Enterprises, which employs 50,000 at about 275 locations in the U.S. and U.K., primarily office and retail facilities.

A closely watched national survey by the University of Michigan showed a continued decline in consumer sentiment as households remain uneasy over inflation, tariffs and other economic uncertainties. The university said overall sentiment has dropped nearly 30% since January 2025.

Researchers said most responses in the latest survey were gathered prior to the Trump administration’s announced pause and reduction of tariffs to be imposed on goods from China, taking them from 145% to 30%. Revised numbers to be released this month are expected to reflect responses to the China tariff switch and other changes reflecting a move toward more web-based polling, after prior use of primarily phone-based surveys. 

Researchers said preliminary mid-May numbers showed the overall sentiment index, gauging several metrics tied to household finances and the larger economy, at 50.8. Generally reflecting the percentage of respondents with favorable views of the economy, that number was down from 52.2 for April and well below the 69.1 for May 2024.

“Tariffs were spontaneously mentioned by nearly three-quarters of consumers, up from almost 60% in April,” Joanne Hsu, the university’s consumer survey director, said in a statement. “Uncertainty over trade policy continues to dominate consumers’ thinking about the economy.”

Meanwhile, Moody's on Friday downgraded the nation's credit rating to Aa1 from Aaa due to rising debt and interest costs.