The U.S. Commerce Department released the housing market data on Wednesday. Housing starts in the U.S. soared 10.5% to 1.173 million annualized rate in November from a 1,062 million pace in October, exceeding expectations for an increase to 1.135 million.

October's figure was revised up from 1.160 million units.

The increase was driven by rises in starts of single-family and multifamily homes.

Housing market benefits from the strengthening of the labour market. But there is a shortage of houses available for sale.

Building permits in the U.S. climbed 11.0% to 1.289 million annualized rate in November from a 1.161 million pace in October, beating expectations for a 1,150 pace.

Starts of single-family homes increased 7.6% in November. Building permits for single-family homes were up 1.1%.

Starts of multifamily buildings climbed 16.4% in November. Permits for multi-family housing rose 26.9%.