The U.S. Commerce Department said monthly housing starts jumped 25.5% to 1.323 million units in October, a 9-year high. Most economists had forecasted a much lower 11.6% growth rate, reported NASDAQ.
The higher than expected jump was primarily driven by the multifamily sector, which grew 68.8%, or 454,000 , followed by single-family homes at 10.7%, or 869,000. The report also revealed that building permits, which are an indicator of future housing patterns, increased slightly by 0.3%, or 1.229 million.