New-home construction surged in November to its highest level in nearly six years, the latest sign of renewed momentum in the sector's recovery.
U.S. housing starts rose 22.7% from October to a seasonally adjusted annual rate of 1,091,000, the Commerce Department said Wednesday. That was higher than the 952,000 forecast by economists and brought the average pace of starts for the last three months to 951,000.
Details of the report showed underlying strength in the sector in November. The sharp rise in home starts was primarily driven by a 21% jump in single-family homes, a bigger and more stable segment of the market.
November building permits, an indicator of future construction, fell slightly to the still-elevated level of 1,007,000. Permits had jumped 6.7% in October.
The data showed construction returning to the brisk pace seen early this year, before the sector's recovery took a hit from rising interest rates. Builders broke ground on an average 869,000 homes between June and August.
From: WSJ
