According to figures from the Commerce Department released Thursday, housing starts across the country advanced by 25.5 percent in October, reported Bloomberg.
Not only did the construction of new residential homes reach a nine-year high last month, but the growth between September and October was the largest since July 1982. The jump in housing starts brought the annualized rate to 1.32 million.
The figures beat the average forecast - 1.16 million - of economists surveyed by Bloomberg, helped by a robust uptick in single-family homes and a large increase in apartment construction projects. The construction of single-family homes rose 10.7 percent last month.
"Homebuilding is in a steady recovery," said Richard Moody, chief economist at Regions Financial Corp. in Birmingham, Alabama. "The fundamentals for demand are in good shape" although "higher mortgage rates could be a potential headwind if we see further gains in rates."
According to Construction Dive, authorizations for building permits were also up, forecasting advanced construction growth. Rising 0.3 percent from September to October, permits were up 4.6 percent from this time last year.
The housing start figures for October were surprising for industry leaders, reported the source.