U.S. housing starts increased sharply in November 2020

U.S. homebuilding and permits increased solidly in November 2020, pointing to sustained housing market strength even as the broader economic recovery is slowing amid a resurgence in new COVID-19 cases and lack of additional government money.

Housing starts rose 1.2% to a seasonally adjusted annual rate of 1.547 million units last month, the Commerce Department said on Thursday. That lifted homebuilding closer to its pace of 1.567 million units in February 2020. Economists polled by Reuters had forecast starts holding steady at a rate of 1.530 million units in November 2020. Homebuilding surged 12.8% on a year-on-year basis.

Permits for future homebuilding raced 6.2% to a rate of 1.639 million units in November 2020. Permits typically lead starts by one to two months.

Single-family homebuilding, the largest share of the housing market, rose 0.4% to a seasonally adjusted annual rate of 1.186 million units, the highest level since April 2007.