WASHINGTON — Groundbreaking for new U.S. home construction increased 5.8% in April to a seasonally adjusted annual rate of 672,000, as building permits fell 11.5% to 606,000, the Commerce Department reported yesterday.
While the housing starts figure — the highest since October 2008 — surpassed economists’ expectation of an annualized rate of 650,000 starts, the number of new permits fell far short of a 680,000-rate forecast, according to the median estimate from Thomson Reuters.
Meanwhile, housing starts in March were revised higher to 635,000 from an originally reported 626,000. March’s building permits figure was unrevised at 685,000.
Housing starts increased 40.9% from April 2009, the strongest annual growth since a 44.4% surge in the 12 months ending March 1994, Commerce data showed.
