After decreasing in September, U.S. new-home construction grew 3.8% in October to a seasonally adjusted annual rate of 1.314 million units, according to cnbc.com.
Economists had expected housing starts to increase to a pace of 1.32 million units in October. The October rate increased 8.5% compared with October 2018.
Single-family starts rose 2% to 936,000 units, and multifamily starts increased 8.6% to a rate of 378,000 units. Building permits surged 5% to a 1.461 million annualized rate, reaching the highest level since May 2007.
Data for September was revised up to show homebuilding declining to a pace of 1.266 million units instead of the 1.256 million units previously reported.
Builders reportedly complained about “a lack of labor and regulatory constraints” and said “lot shortages remain a serious problem, particularly among custom builders.”
