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Home construction for moving families increases

More residential construction began last month.

More residential construction began last month.

New data shows that there will be more new homes available for moving families in the coming months.

According to the Commerce Department, the number of housing starts - the number of homes being built - edged up 0.3 percent in September compared to the previous month, and 4.1 percent above levels from September of 2009. The biggest increase was seen in the number of single-family homes, which increased 4.4 percent.

"Stability is slowly returning to the new-homes market following the declines we saw upon expiration of the homebuyer tax credits and the slowing of economic growth this summer," said David Crowe, the chief economist for the National Association of Home Builders.

While housing permits - a signal of future construction and relocation demand - also fell by 5.6 percent over the month, much of that decline was for the construction of multi-family buildings. Permits for single-family homes actually rose 0.5 percent.

The announcement comes one day after the NAHB saw a boost in its monthly builder confidence survey, another signal of a recovering market. The index showed its first increase in five months, jumping from a reading of 13 to 16.