The construction of new homes in the US rose 3.6% between May - June to the highest level in seven months.
This is the second month in a row that housing starts have risen following a post-war low in April.
Compared with the same month a year ago, however, June starts were down 46%.
The Commerce Department said the number of single family homes being built jumped 14.4% in June - the biggest jump in over four years.
The number of new homes built totalled 582,000.
Figures for May were also revised upwards, from 532,000 to 562,000.
However, the Centre for Economics and Business Research.
urged caution, saying it was "too soon to call a bottom" to the housing market in the US.
