Housing Starts Surge to 19-year High

WASHINGTON — Home-building activity rose to its highest level in nearly 20 years in November, showing that the housing sector continues to underpin the U.S. economic recovery.

Housing starts rose by a larger-than-expected 4.5 percent to a seasonally adjusted 2.07 million annual rate, the Commerce Department said recently. The last time home-building activity eclipsed the two million mark was in February 1984.

The November report follows a revised increase of 2.5 percent in October to a 1.98 million rate. October starts were previously reported as rising 2.9 percent to a 1.96 million annual rate. September housing numbers also were revised upward.

The report was substantially stronger than analysts had expected. A Dow Jones Newswires-CNBC poll of economists predicted housing starts would fall by 3.1 percent to a 1.9 million annual rate.

The housing sector of the U.S. economy has remained strong for the past several years and has defied analysts’ expectations as it weathered the 2001 economic recession. Near record-low mortgage rates continue to drive growth in the housing market.

Source: Dow Jones Newswires