Builders rushed to start homes in November, with that key measure of the housing recovery enjoying a huge one-month jump.
Housing starts grew at an annual pace of 1.09 million, up nearly 30% from a year ago. The issuance of building permits was also strong, up 7%.
Still the pace of housing starts was less than half of the peak levels during the housing boom in the middle of last decade, and was even 25% below the monthly average over the course of the last 50 years.
“Because of this, the impressive acceleration in residential investment which has occurred in 2013 should extend through 2014,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank, in a note Wednesday.
A survey by the National Association of Home Builders released Tuesday showed builders reporting the best sales conditions for single family homes in eight years.