WASHINGTON, DC—October's residential construction starts and permits beat analysts' estimates, with multifamily putting in an especially strong showing. While building activity in the comparatively volatile apartment sector has often trailed that of single-family over the course of this year—and at times brought down the overall gains—October data from the Census Bureau show the sector leading the way.

Overall residential starts in October were at a seasonally adjusted annual rate of 1.29 million units, up 13.7% from September and the fastest pace in a year. Economists polled by Reuters and Bloomberg News had projected annualized totals of 1.185 and 1.19 million units, respectively. Starts for single-family were up by 5.3%, while multifamily groundbreakings jumped 36.8% from the previous month to an annualized pace of 393,000 units.

Although the South was credited with much of the surge in activity as areas hit hard by Hurricanes Harvey and Irma began to rebuild, other regions of the US also saw an uptick. Starts overall in the Midwest and Northeast were up even more sharply on a percentage basis, albeit with fewer units in each region, although total starts were down in the West by 3.7% compared to September.