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Economists had expected a smaller increase to a five million unit pace.
April's starts were revised up to a 541,000 unit pace.
In a cautionary sign for the housing sector, new permits for building homes dropped 3.7 percent, to a 755,000 unit pace.
Starts of single-family homes fell 13.7percentt last month, the biggest decline since January 1991, from a 1.501 million unit pace in January.
The Commerce Department reported August sales at a 288,000 unit annual rate, unchanged from July's rate, which was revised up from a previously reported 276,000 unit pace.
[C10.] Home Resales Rose 16% in January Home resales increased 16.2percentto to an annual pace of 6.04 million, from a 5.2 million unit pace in December, the trade group, the National Association of Realtors said.
But in the West, housing construction fell 3.6percentto to a pace of 377,000, and in the Midwest, it dipped 0.3percentto to a 339,000 unit pace.
Similar(4)
It was on my mind from the very beginning, if only because the first patient I encountered when I entered the unit, pacing up and down the halls, was in the midst of getting a series of ECT treatments and insisted loudly to anyone who would listen that they were destroying his brain.
Analysts had expected a 560,000-unit pace in August.
Economists had expected them to rise to a 945,000-unit pace.
Single-family starts increased 4.3 percent, to a 438,000-unit pace, the highest since June.
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CEO of Professional Science Editing for Scientists @ prosciediting.com