Washington, DC, United States (4E) – Home construction in the U.S. rose in July, as housing starts increased nearly 16 percent last month to an annual pace of 1.093 million units, according to the Commerce Department report released Tuesday.
The increase marks the highest level of construction activity since last November, boosted by a rise in new apartments. The figure suggests a rebound in the housing market that could boost the economy in coming months
Home construction surged 22 percent in the 12 months through July, and an increase in applications for building permits in July suggests further gains in 2014. The increase could temper worries at the Federal Reserve that weak housing sector could hurt this year’s economic growth.
Tuesday’s data showed that housing starts on single-family homes rose 8.3 percent in July from the prior month.
Construction of multifamily units climbed 33 percent to an annual rate of 423,000 units, the highest mark since January 2006.