The Commerce Department reported on Thursday the housing starts fell by 6.0 percent m-o-m in January 2021 to a seasonally adjusted annual pace of 1.580 million, while building permits surged by 10.4 percent m-o-m to a seasonally adjusted annual rate of 1.881 (the highest level since May 2006).

Economists had forecast housing starts decreasing to a pace of 1.658 million units last month and building permits dropping to a pace of 1.678 million units.

Data for December was revised to show homebuilding growing to a pace of 1.680 million units, instead of increasing at a rate of 1.669 million units as previously reported.

According to the report, permits for single-family homes, the largest segment of the market, rose 3.8 percent m-o-m to a rate of 1.269 million units in January, while approvals for the multi-family homes segment surged 28.0 percent m-o-m to a 557,000 unit-rate.