The two indicators in April were at their highest level since February. Housing starts had fallen in March to a 17-year low.
However, on a 12-month basis, April housing starts were down 30.6 percent and permits fell 34.3 percent.
Although US builders broke ground on more homes than expected in April, all of the additional building took place on multi-family homes. Starts on single-family homes fell to their lowest level in 17 years, the Commerce Department said.
New construction of single-family homes, a better and more stable indicator of new home trends, fell 1.7 percent to a 692,000-unit rate, the lowest level since January 1991.
Starts of homes for five or more families skyrocketed 40.5 percent to an annual rate of 326,000 units.
By region, starts fell only in the Northeast, by 12.7 percent. The Midwest saw the largest jump in starts, by 24.4 percent, followed by the West at 18.5 percent and the South at 3.6 percent.
Single-family building permits rose 4.0 percent to 646,000 units. In the Northeast, permits for single-family homes maintained last month's record low of 60,000. Permits in the South fell to the lowest level since June 1993.