Homebuilding in the U.S. showed solid growth in October, with construction starts moving sharply higher and permits for new construction rising to the highest level in 12-years.

Housing starts, which are recorded when a home’s foundation is first dug, increased 3.8 percent to a seasonally adjusted annual rate of 1.314 million units last month. Compared with the prior year, starts are up 8.5 percent.

Single-family construction increased for the fifth consecutive month, rising 2.0 percent above the revised higher figure for September. These are up 8.2 percent from a year ago.

September’s figures were revised upward to a seasonally adjusted annual rate of 1.266 million homes from 1.256 million.

Permits defied expectations for a decline and instead surged much higher to a seasonally adjusted annual rate of 1.461 million. That is the highest level in at least 12 years, 5 percent higher than the revised upward September figure and 14.1 percent higher than a year ago.