New residential construction in the US increased last month to a seasonally adjusted annual rate of 914,000, which is nearly 7% higher than April’s count. Meanwhile, newly issued building permits declined 3.1% in May to a seasonally adjusted 974,000 annual pace vs. the previous month. Nonetheless, the housing recovery is still very much alive and kicking. But today’s numbers are a reminder that growth is probably slowing, which is only natural as new supply moves in line with demand. The last year or so has been about playing catch-up with demographics, but the big adjustments are probably behind us. The cycle for housing construction, in other words, is maturing.