WASHINGTON—Construction on new houses rose in February to a five-month high, led by the biggest increase in single-family units in nine years, according to the Commerce Department.
Housing starts climbed 5.2% last month to an annual pace of 1.18 million, the Commerce Department said.
In a separate poll conducted by MarketWatch, economists had expected starts to rise at a seasonally adjusted 1.15 million rate.
The pickup in construction last month was centered on single-family homes. Single-family starts jumped 7.2% to an annual rate of 822,000. That’s the highest level since November 2007, one month before the Great Recession started, the Commerce Department said.
Housing starts in the West hit a nine-year peak, while new construction in the Midwest reached the highest level in 1.5 years.
Little letup is likely, either. Permits for new construction, a sign of future demand, rose 3.2% to an annual rate of 1.17 million. Permits are running 6.3% above year-ago levels.