Housing Starts Jump 17% in May

Housing starts increased 17% in May, the Commerce Department said Tuesday.

Starts rose to an annual rate of 454,000 units, Commerce said.

Single-family home construction rose 7.5% to a 401,000 annual rate.

Building permits, an indicator of new construction, also rose, gaining 4% to a 518,000-unit pace.

Housing starts were projected to increase to an annual rate of 485,000 units, while permits were forecast to rise to a 508,000 rate Bloomberg reported.

Regionally, starts were led by a 29% jump in the West and a 17% increase in the South. They rose 11% in the Midwest and 2% in the Northeast.