Single-family housing production reached its highest level in almost a year, according to figures from the Census Bureau, and U.S. Department of Housing and Urban Development.
Single-family housing starts in October rose 4.6 percent to 696,000 seasonally adjusted annual units, the National Association of Home Builders reported, adding that it was the sector’s best performance since November 2013.
However, a 15.4 percent drop in multifamily housing starts brought the combined seasonally adjusted annual figure down 2.8 percent to just over 1 million.
"The rise in single-family starts is more proof that the economy is firming and consumer confidence is growing," said Kevin Kelly, NAHB chairman and a home builder and developer from Wilmington, Del. "We expect continued upward momentum into next year."
David Crowe, the association’s chief economist, said the multifamily drop does not mean trouble.
"The increase in single-family starts shows that the housing market continues to recover at a steady, gradual pace," Crowe said. "On the multifamily side, production is stabilizing above historic levels as demand for rental housing increases."