U.S. homebuilding increased more than expected in August, which is a positive sign for a housing market that has underperformed the broader economy amid rising interest rates for home loans.
As Reuters reports, housing starts rose 9.2% to a seasonally adjusted annual rate of 1.282 million units in August, the Commerce Department announced this morning. Analysts polled by Reuters had expected an annual rate of 1.235 million units. The Commerce Department also raised its estimate for starts in July to a 1.174 million-unit rate.
U.S. housing starts data can be volatile and subject to large revisions. Much of August’s gain was in the particularly volatile multifamily component, with starts on buildings with two or more units rising 29.3% to an annual rate of 406,000 units.
Meanwhile, Single-family homebuilding—which accounts for the largest share of the housing market—rose a more modest 1.9% to a rate of 876,000 units in August.
Groundbreaking activity increased in the Midwest, South and West, but was flat in the Northeast.
