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U.S. Housing Starts Increase Amid Shift to Single-Family Homes

  • Building permits were issued at fastest pace since 2007
  • Developers race to satisfy demand for larger homes in suburbs
    
Photographer: Emily Elconin/Bloomberg
Updated on

U.S. new home starts increased in September on a sharp gain in single-family house construction while building permits climbed, indicating residential building had plenty of momentum at the end of the third quarter.

Residential starts increased 1.9% to a 1.42 million annualized rate from a month earlier, according to a government report released Tuesday. The median forecast in a Bloomberg survey of economists called for a 1.47 million pace. Applications to build, a proxy for future construction, rose 5.2% to a 1.55 million rate, the fastest since 2007 and topping forecasts.