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Groundbreaking slipped 2.8 percent to a
seasonally adjusted annual 1.009 million-unit pace, the Commerce
Department said on Wednesday. September's starts were revised up
to a 1.038 million-unit rate.
Economists polled by Reuters had forecast starts rising to a
1.025-million unit rate from September's previously reported
1.017-million unit pace.
The volatile multi-family homes segment accounted for the
decline in housing starts last month. Starts for single-family
homes, the largest part of the market, rose for a second
straight month to their highest level in nearly a year, a good
omen for housing.
While residential construction, homebuilder sentiment and sales
have been trending higher in recent months, sluggish wage growth
and stringent lending practices by financial institutions
continue to constrain activity.
Still, home building is expected to contribute to gross domestic
product in the fourth quarter after being neutral in the
July-September period.
Starts for single-family homes increased 4.2 percent last month
to a 696,000-unit pace, the highest since November of last year.
Multi-family homes starts fell 15.4 percent to a 313,000-unit
rate in October.
Last month, permits jumped 4.8 percent to a 1.080 million-unit
pace, the highest since June 2008. It was the second straight
month of gains in permits, which lead starts.
Permits for single-family homes rose 1.4 percent to a
640,000-unit pace. Permits for multi-family housing surged 10
percent to a 440,000-unit pace.
(Reporting by Lucia Mutikani; Editing by Paul Simao) ((Lucia.Mutikani@thomsonreuters.com;
1 202 898 8315; Reuters Messaging:
lucia.mutikani.thomsonreuters.com@reuters.net)
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