The U.S. Commerce Department released the housing market data on Wednesday. Housing starts in the U.S. dropped 11.0% to 1.060 million annualized rate in October from a 1,191 million pace in September, missing expectations for a decrease to 1.160 million.

September's figure was revised down from 1.206 million units.

The decrease was driven by declines in starts of single-family and multifamily homes.

Housing market benefits from the strengthening of the labour market.

Building permits in the U.S. climbed 4.1% to 1.150 million annualized rate in October from a 1.105 million pace in September, in line with expectations.

Starts of single-family homes decreased 2.4% in October. Building permits for single-family homes were up 2.4%.

Starts of multifamily buildings slid 25.1% in October. Permits for multi-family housing rose 6.8%.