According to the latest data released, the total home construction in the US rose during the month of May indicating that the housing market is gradually recovering in the country.

Housing developers in the country increased construction activity in May and sought permits to build single-family homes at their fastest pace in five years. The improvement in the sector is expected to contribute significantly to the overall economy, which is facing pressure under federal cuts and weak global demand for US exports.

The data released by the Commerce Department on Tuesday showed that total homes started grew 6.8 per cent in May with a seasonally adjusted annual rate of 914,000 homes. The growth comes after a 14.8 per cent fall recorded in the month of April and still lower than March's rate of more than 1 million. Data also showed that single-family homes, apartments and condominiums recorded higher growth during the month.

Single-family homes, which represent about two-thirds of the market, recorded higher number of permits applications by the builders. The seasonally adjusted annual rate rose 1.3 per cent to 622,000, which is its highest since May
2008. On the other hand, permits fell 3.1 per cent in May to a seasonally adjusted of 974,000 due to lesser number of apartment approvals.