Housing Starts Rise Sharply in August

Washington, DC, Sept. 21, 2010--Housing starts rose more than expected in August to their highest level in four months, according to the Commerce Department.

The government also said that permits for future home construction rose by 1.8%.

The Commerce Department said housing starts rose 10.5%, the largest increase since November, to an annual rate of 598,000 units.

There was a 34% surge in the West and a 22% gain in the Midwest

Analysts had expected housing starts to rise to a 550,000-unit rate. Gains were driven by sharp increases in multi-family starts and permits.

Starts were up 2.2% in August from the same month last year, while permits decreased 6.7%.

Work on multifamily homes increased 32% to an annual pace of 160,000.