The U.S. Census Bureau and the Department of Housing and Urban Development reported Thursday morning that new housing starts in October jumped to a seasonally adjusted annual rate of 1.323 million, an increase of 25.5% from the upwardly revised September rate of 1.054 million and an increase of 23.3% compared with the October 2015 rate of 1.073 million. The consensus estimate from a survey of economists was a rate of around 1.168 million.
The revision to the September rate added 7,000 new housing starts from the previously reported total.
The seasonally adjusted rate of new building permits rose in October to 1.229 million, up 0.3% from the upwardly revised September rate of 1.225 million and 4.6% above the October 2015 rate of 1.175 million. The consensus estimate called for 1.19 million new building permits.
Single-family housing starts rose in September to an annualized rate of 869,000, up 10.7% from the upwardly revised September rate of 785,000. Single-family starts rose more than 21% year over year in October.
Permits for new single-family homes rose 2.7% month over month in October, to an adjusted annual rate of 762,000, from an upwardly revised total of 742,000 in September. The rate rose 5.1% year over year.
Multifamily starts for buildings with five or more units rose by 28.2% year over year in October and rose by a whopping 74.5% compared with September.