Led by growth in the construction of single- and multifamily homes, U.S. housing production surged 22.7 percent to a seasonally adjusted 1.09 million annual rate in November 2013.
The figures come from the Census Bureau and the U.S. Department of Housing and Urban Development.
Officials with the National Association of Home Builders said they were not surprised by the figures.
“This report is in line with our latest survey, which shows that builders are increasingly confident that buyers who have sat on the sidelines are feeling more secure about their economic situation and are now moving to purchase new homes,” said Rick Judson, NAHB chairman and a home builder from Charlotte, N.C. “This upward trend could be even stronger if not for persistently tight lending conditions for buyers and builders facing rising costs for building materials, lots and labor.”
David Crowe, the association’s chief economist, said the nation’s housing market is on stable footing, despite the tight mortgage market.
“Single-family and multifamily starts are at five-year highs, providing additional evidence that the recovery is here to stay,” Crowe said. “We hit a soft spot this fall when interest rates jumped and the government closed down, but mortgage rates still remain very affordable and pent-up demand is helping to boost the housing market. We expect a continued steady, gradual growth in starts and home sales in 2014.”
Single-family housing had a 20.8 percent gain during November, leading to a seasonally adjusted 727,000 annual rate. It was the segment’s fastest growth rate since December 2007.
Multifamily housing was up 26 percent to 364,000 units.
Regionally, the Midwest was strongest, with a 41.7 percent boost, followed by 38.5 percent in the South and 8.8 percent in the Western U.S. Starts fell 29.4 percent in the Northeast, NAHB said.