Housing starts rose to a 1.29 million-unit annualized rate in November, up 3.3% from October. The surge initially reported for October, however, was revised down. The critical, single-family home market accounted for the bulk of the increase in starts but remains well below demand. Shortages of both new and existing homes, particularly in the entry-level market, remain acute.
Moderate gains in the single-family home market were driven by a jump in starts in the South, which suffered the largest disruption and damage associated with hurricanes.