Photo by Stoker via MorguefileU.S. production and permits of new homes surged in September to its fastest pace in more than four years, fueling the recent housing sector spark and supporting the wider economic recovery.

Newly released government figures reported a 15 percent gain in the pace of new housing construction and an 11.6 percent gain in permits issued, the strongest numbers seen in both categories since July of 2008.

“Builders are responding to the rising demand for new homes as consumers begin to feel more confident about their local markets and put back into motion purchasing plans that were on hold during the recession,” Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a Florida home builder said in a press release.

The overall gain in new-home construction in September was reflected across both the single- and multifamily sectors, and across every region of the country except the Northeast.

“Today’s strong report corresponds with the significant gains we’ve seen in builder confidence over the past year, and confirms our view that a housing recovery is solidly underway in a growing number of markets nationwide,” added NAHB Chief Economist David Crowe.

Issuance of new building permits, an indicator of future building activity, also registered significant gains in both the single-family and multifamily sectors in September. Single-family permits rose 6.7 percent while multifamily permits rose 20.3 percent.

Regionally, these gains rose across the board, with the Northeast posting a 6.0 percent gain, the Midwest posting a 19.5 percent gain, the South posting a 10.5 percent gain and the West posting an 11.3 percent gain.

Photo by Stoker via Morguefile

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