Housing Starts, Permits Surge in November

Washington, DC, Dec. 20, 2011 -- Housing starts and permits rose to a 1-1/2 year high in November as demand for rental apartments increased, according to the Commerce Department.

The government said on Tuesday that housing starts rose 9.3% to a seasonally adjusted annual rate of 685,000 units, the highest since April of last year.

Economists had forecast housing starts rising to a 635,000-unit rate. Compared to November last year, residential construction was up 24.3%.

Although the overall housing market remains weak, rising demand for rental apartments is spurring the construction of multifamily homes.

New building permits unexpectedly rose 5.7% to a 681,000-unit pace in November. Economists had expected overall building permits to fall to a 635,000-unit pace last month.

Permits included a 13.9% jump in the multi-family segment. Permits for buildings with five or more units were the highest since October 2008. Permits to build single-family homes rose 1.6%.