Housing starts soar in February to strongest since 1998

The Commerce Department said that housing starts in February climbed their fastest pace in more than three years, climbing 2.8 percent to a seasonally adjusted annual rate of 1.769 million units.

WASHINGTON--The Commerce Department said that housing starts in February climbed their fastest pace in more than three years, climbing 2.8 percent to a seasonally adjusted annual rate of 1.769 million units.

January starts were revised upward, to a 1.721 million annual rate from the previously reported 1.678 million pace. The unexpected strength was led by a 7.4 percent hike in single-family home starts, which saw ground broken at 1.457 million unit rate, the quickest pace since December 1978, according to the Commerce Department (www.home.doc.gov).

Permits for home construction--an indicator of future activity--were also up in February, rising 1.8 percent to a 1.752 million annual rate.