Housing starts in the US jumped in April and building permits hit their highest level in nearly six years, offering hope that the troubled housing market could be stabilizing.
The Commerce Department said Friday groundbreaking increased 13.2 per cent to a seasonally adjusted annual pace of 1.07 million units, the highest level since November 2013.
Starts rose by a revised 2 per cent in March. They had previously been reported to have gained 2.8 per cent.
Housing Starts, US
Last month, groundbreaking for single-family homes, the largest segment of the market, rose 0.8 per cent to a 649,000-unit pace. Starts for the volatile multi-family homes segment surged 39.6 per cent to a 423,000-unit rate.
Permits to build homes jumped 8 per cent to a 1.08-million unit pace in April.
The pickup in construction was driven by growth in construction of multifamily homes, which were up by nearly 43 per cent.
Permits for single-family homes rose 0.3 per cent to a 602,000-unit pace.
Permits for multi-family homes soared 19.5 per cent to a 478,000-unit rate in April.
Compared to the same month a year ago, housing starts were up by 26.4 per cent in April. Building permits saw a more modest 3.8 per cent year-over-year increase.