Washington, DC CNN  — 

US home building increased in July, rising 3.9% from June, as low inventory in the existing home market continued to boost interest in new homes.

Housing starts, a measure of new home construction, climbed to a seasonally adjusted annual rate of 1.452 million, beating market expectations of 1.448 million, according to data released Wednesday by the Census Bureau.

The number of units started was up 5.9% from a year ago.

Single‐family housing starts, which account for most of the building, rose 6.7% in July from the revised June figure, at a seasonally adjusted annual rate of 983,000. The seasonally adjusted annualized rate for multi-family starts, with five units or more, was 460,000.

Building permits, which track the number of new housing units granted permits, were essentially flat in July, rising 0.1% to a seasonally adjusted annual rate of 1.442 million. Permits were down 13% from a year ago.

This is a developing story and will be updated.