WASHINGTON (Reuters] – The U.S. saw an 8-month increase in homebuilding due to an acute lack of property on the market. But, there are still constraints such as higher labor costs and lower raw materials prices.

According to the Commerce Department, housing starts rose 11.8% last month to an adjusted seasonal rate of 1.679million units. This is the highest point since March. From 1.520million units previously reported, October’s data has been revised to 1.502million units.

Reuters polled economists and predicted that starts would rise to 1.568 million units. Last month saw increases in starts for single-family homes and multifamily projects.

The November rate for permits to future home construction increased 3.6% to 1.7112 million units.

The March 1.725 Million Unit-Past Scaled In March saw a drop in starts. This was more than 14-1/2 years after a record high. Builders struggled to find the right materials and faced shortages.

According to data from producer prices, the nonresidential construction input price increased by almost 25% over the twelve months ending November. The backlog is huge, with many houses still being approved for construction.

The National Association of Home Builders conducted a Wednesday survey and found that single-family homebuilders were more confident than ever in December. But, they noted that it is still difficult to find workers, predict pricing, or deal with delays.