New home construction rose in October, underscoring continued improvement in housing last month.
Housing starts rose 3.6% from September to a seasonally adjusted annual rate of 894,000, the Commerce Department reported. That was up 41.9% from the same month last year.
The rise was driven mostly by the development of multi-family housing such as apartments and condominiums. Single-family home starts were essentially flat, down 0.2%, from the month prior.
Economists surveyed by Bloomberg News had expected starts to fall, particularly since the East Coast was hit by Hurricane Sandy last month.