Home builders saw new housing starts in both single-family and multifamily production, jump 25.5% in October to a seasonally adjusted annual rate of 1.32 million units, according to the National Association of Home Builders (NAHB).
The NAHB said that single-family starts had risen 10.7% in October to a seasonally adjusted annual rate of 869,000 units which was their highest level since October 2007.
Multifamily production was up a whopping 68.8% from the previous month to 454,000 units.
All areas of the country saw double-digit gains in all four regions in October. The Northeast, Midwest, South and West increased 44.8%, 44.1%, 17.9% and 23.2%, according to the NAHB.
Permits to build new properties was up slightly in October to 0.3% to a seasonally adjusted annual rate of 1.23 million.
“These robust figures correlate with strong builder optimism in the housing market,” said Ed Brady, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Bloomington, Ill. “A firming job market, a growing economy and rising household formations will keep the housing recovery on track into next year.”
“Multifamily production bounced back after an unusually weak reading last month while single-family starts exhibited unusually strong growth as well,” said NAHB Chief Economist Robert Dietz. “Though October’s single- and multifamily production rates are clearly unsustainable, we expect continued growth in the housing sector in the months ahead.”