Sept. housing starts surge 15% to 17-month high ( ITB LEN DHR PHM TOL ) (by Steve Goldstein)

WASHINGTON (MarketWatch) - Housing starts surged 15% in September to the highest level in one-and-a-half years, according to data released Wednesday, aided by increased demand for rental stock as well as rebuilding after Hurricane Irene. The Commerce Department said starts rose to a seasonally adjusted annual rate of 658,000, which also is 10.2% above the September 2010 reading and the best level since April 2010 - the month the homebuyer tax credit expired. The figures were well ahead of the 590,000 forecast in a MarketWatch-compiled economist poll, but single-family starts rose a more modest 1.7% to 425,000, which is only a two-month high. The less-volatile building permits figures declined 5% to 594,000, and single-family permits eased 0.2%. August's reading on housing starts was modestly revised higher to 572,000 from 571,000, and August's reading on permits was revised higher to 625,000 from an initial reading of 620,000.