Home starts rose 6.5 percent during the month to a seasonally adjusted average of 1.206 million, according to preliminary data from the Commerce Department. That total is up 17.5 percent over the same time last year.
The new data also revised the August rate upward, from the previously reported 1.126 million to 1.132 million.
Fueling the gains, apartment construction rose 17 percent during the month to a rate of 454,000. That segment is now up 29 percent over the same period last year. Single family starts rose too, but only slightly with an 0.3 percent gain to 740,000. That total is up 12 percent year over year.
Building permits, a good barometer of how the homebuilding industry is trending, fell during September by 5 percent to 1.103 million. Permits are up 5 percent above the September 2014 figure.
Builder confidence in the market continues its steady increase as well, reaching what the National Association of Home Builders is calling a housing-boom-level high after give straight months of increases.
October’s NAHB/Wells Fargo builder sentiment index rose three points to a 64. Any reading above a 50 indicates most home builders believe market conditions are good.
