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Groundbreaking dropped 9.0 percent to a seasonally adjusted
annual pace of 1.05 million units, the lowest level since March
2015, the Commerce Department said on Wednesday. August's starts
were revised up to a 1.15 million-unit pace from the previously
reported 1.14 million-unit rate.
Single-family home building, which accounts for the largest
share of the residential housing market, jumped 8.1 percent to a
783,000-unit pace in September, the highest level since
February.
Economists polled by Reuters had forecast housing starts rising
to a 1.18 million-unit pace in September. Last month's drop left
the overall housing starts in the third quarter well below their
average for the second quarter.
That suggests residential construction remained a drag on gross
domestic product in the third quarter after subtracting from
output in the April-June period.
Housing starts for the volatile multi-family segment plunged
38.0 percent to a 264,000-unit pace in September. But with rents
rising at their fastest pace in 10 years, last month's drop is
likely to be temporary.
Overall home building activity is likely to rebound in the
coming months, as permits for future construction surged 6.3
percent in September. Single-family permits edged up 0.4 percent
last month. Building permits for multi-family units soared 16.8
percent in September.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
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