U.S. housing starts surged a better-than-expected 10.5% in August to a seasonally adjusted annual rate of 598,000 on strength in multifamily construction, the Commerce Department said Tuesday.
Economists surveyed by Dow Jones Newswires expected overall housing starts to decrease by 0.2% to 545,000 during August, largely because buyers have remained concerned with a weak job market and uncertain economic prospects.
But August’s figures indicate a strong month-on-month rise even after the April 30 expiration of tax incentives for first-time purchases, and a 2.2% rise from the same period a year earlier.
Single-family housing starts rose in August by 4.3% to an annual rate of 438,000. Groundbreakings of homes with two or more units in August surged 32.2% to 160,000.
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