Housing to expand more as Dec starts hit 7-year high

Washington

NEW residential construction in the United States rose more than forecast in December, capping the best year since 2007 and signalling the industry will probably keep expanding this year.

Housing starts increased 4.4 per cent to a 1.09 million annual rate, following the prior month's 1.04 million pace that was higher than previously estimated, a Commerce Department report showed on Wednesday. The advance was driven by single-family projects, which climbed to an almost seven-year high.

An improving labour market, mortgage costs close to multi-year lows and rising consumer confidence will probably sustain demand for residential real estat…