WASHINGTON - Groundbreaking for U.S. home construction was stronger than economists expected in August as building permits and housing starts both increased for the first time since March, the Commerce Department reported today.
Housing starts increased 10.5% in August to a 598,000 seasonally adjusted annual rate. Starts were boosted by a 42.7% surge in construction of multi-unit buildings. Building permits increased 1.8% to a 569,000 seasonally adjusted annual rate.
Economists expected 550,000 housing starts and 560,000 building permits for August, according to the median estimate from Thomson Reuters.
July housing starts and building permits were both revised lower. Housing starts for July were revised to 541,000 from 546,000 and building permits were revised to 559,000 from 565,000.
Single-family building permits slipped by 5,000 to 401,000 in August while starts increased by 18,000 to 438,000.
Starts for construction of two or more units have increased by at least 32% in back-to-back months.
The August inventory of new residential properties under construction was unchanged, tying a record low of 444,000 set last month. The inventory of building permits fell to a record low in August.
For the year ending in August, building permits fell 6.7% and housing starts increased 2.2%.
