The annual rate for privately owned housing starts rose to 1.96 million units last month, according to a report released by the U.S. Dept. of Commerce. The March construction pace was up 6.9% from a year ago. Single-family housing starts increased 2.6% from March 2005, to a rate of 1.59 million units, while starts for buildings with five or more units rose 34.1% to 334,000. The number of building permits issued, which can be an indicator of future building activity, also edged up last month, climbing 1.9% from one year earlier to a seasonally adjusted annual rate of 2.06 million permits.

Regionally, the Northeast posted the largest increase in housing starts at 14.7%, followed by a 7% increase in the South. The rate for privately owned housing starts declined 4.3% in the Midwest and fell by 7.8% in the West.