Housing starts in U.S. surge to second-highest level since 2007

New-home construction climbed in June to the second-highest level since November 2007, with housing starts rising 9.8 percent to a 1.12 million annualized rate, revised from 1.07 million in May, according to a report released Friday from the U.S. Department of Commerce.

Groundbreaking on multifamily dwellings was up 29.4 percent, following a 16.9 percent decrease in May and a 37.5 jump in April. Permits for construction of apartments and multifamily dwellings rose 15.3 percent following a 20 percent leap in May.

Starts of single-family homes dropped to 685,000 from 691,000 in May. Building permits increased 7.4 percent in June to a 1.34 million annualized rate, the highest since July 2007. Applications to begin work on single-family homes rose to 687,000 in June, the most since January 2008.

The National Association of Home Builders/Wells Fargo said its builders sentiment gauge held July at the highest level since November 2005, according to Bloomberg Business.

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