WASHINGTON–Housing starts hit a more than nine-year high in October as builders increased construction of both single and multifamily homes, according to data released by the Commerce Department.
Groundbreaking jumped 25.5% to a seasonally adjusted annual pace of 1.32 million units, the highest level since August 2007, the Commerce Department said. That percentage increase was the biggest since July 1982 and involved increases in all four U.S. regions last month.
Single-family home building, which accounts for the largest share of the residential housing market, jumped 10.7% to an 869,000-unit pace in October, the highest since October 2007, according to Commerce. The housing market is being driven by a tightening labor market, which is starting to drive up wages, Commerce added.
Meanwhile, housing starts for the sometimes volatile multi-family segment soared 68.8% to a 454,000-unit pace. Starts for buildings with five units or more hit their highest level since June 2015.
Permits for future construction edged up 0.3% in October. Single-family permits rose 2.7% last month, while building permits for multi-family units fell 3.3%, Commerce added.