U.S. housing starts rebounded strongly in June and building permits surged to a near eight-year high, pointing to a rapidly strengthening housing market.
Groundbreaking increased 9.8 percent to a seasonally adjusted annual pace of 1.17 million units, the Commerce Department said on Friday.
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May's starts were revised up to a 1.07 million-unit rate from the previously reported 1.04 million-unit pace.
Economists polled by Reuters had forecast housing starts increasing to a 1.11 million-unit pace last month.
Rising household formation as a tightening labor market encourages young adults to leave parental homes is boosting demand for housing, especially apartments.