New US home construction rose in September, led by a pickup in multi-family groundbreakings.

Residential starts increased 7% last month after falling by the most in over a year in August, according to government data released Wednesday. Multi-family dwellings rose more than 17% after also slumping the prior month.

Applications to build — a proxy for future construction — fell to 1.47 million. Permits to build one-family homes ticked up to the highest level since May 2022, while multi-family authorizations declined to the lowest in nearly three years.