Groundbreaking for new U.S. home construction surged 13.2% in April to a seasonally adjusted annual rate of 1.072 million units as building permits spiked 8.0% to an annual rate of 1.080 million units, according to Commerce Department data released Friday.
The rate for housing starts surpassed the 980,000 level predicted by Thomson Reuters' poll of economists. Thomson had projected a 1.015 million rate for permits.
The increase in starts follows a 2.0% rise in March to 947,000 units, originally reported as a 2.8% gain to 946,000 units. In March, permits were off 1.1% to 1.0 million units, first reported as a 2.4% slide to 990,000.
Year-over-year housing starts were up 26.4%, when 848,000 units were started. The permits figure was 3.8% better than the year-ago rate of 1.040 million.
In the regions, home starts in the midwest surged 42.1% to 216,000. In the northeast sales soared 28.7% to a 139,000 rate. In the west, starts gained 11.1% to 231,000 units, while in the south, starts rose 1.5% to 486,000 units.
Meanwhile, permits grew 1.2% in the Midwest to 164,000, in the northeast permits decreased 17.6% to a 112,000 rate, in the south permits rose 18.2% to 539,000, while permits were up 7.7% in the west to 265,000.
