In yet another sign of a housing market on a sustained rebound, the U.S. Commerce Department today said groundbreaking on new homes soared to a pace in September not seen since 2008.
Housing starts jumped 15 percent in September to a seasonally adjusted annual rate of 872,000 units, the fastest pace since July 2008.
Housing starts for August were revised to a 758,000-unit pace, higher than the previously stated 750,000.
Economists had projected a smaller figure for September of a 770,000-unit rate.
The Commerce Department report is further evidence of a housing market that, by most accounts, has turned the corner and is on a sustainable recovery.
Here’s the breakdown:
- September groundbreaking for single-family homes increased 11 percent to a 603,000-unit pace – the highest level since August 2008.
- Starts for multi-family homes surged 25.1 percent.
- Building permits grew by 11.6 percent to a 894,000-unit pace in September; August’s permits were unrevised at 801,000 units.