Investing.com - U.S. housing starts rose more than expected in September on soaring demand for rental apartments, a sign that the housing market continues to steadily improve even as economic growth has slowed.
The Commerce Department said on Tuesday housing starts increased 6.5% to a seasonally adjusted annual pace of 1.21 million units. It was the sixth straight month that starts were above 1 million units, pointing to a sustainable housing recovery.
However, building permits fell 5.0% to a six-month low of 1.10 million-unit rate last month. The weakness is likely to be temporary amid strong confidence levels among homebuilders.
Housing is one of the few bright spots in the economy, which has been slammed by softening global demand and a strong dollar. Economic activity has braked sharply, with third-quarter growth estimates running below a 1.5% annualized rate. The economy grew at a 3.9% rate in the second quarter.