Nationwide housing production rose nearly 23 percent to a seasonally adjusted annual rate of 1.09 million in November, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

NAHB's Chief Economist, David Crowe noted that with single and multifamily starts at five-year highs, "the recovery is here to stay. Mortgage rates still remain very affordable and pent-up demand is helping to boost the housing market. We expect a continued steady, gradual growth in starts and home sales in 2014."

More from the report:

• Single-family starts posted a 20.8 percent gain to a seasonally adjusted annual rate of 727,000 units in November — their fastest rate since December 2007. Multifamily production was up 26 percent to 364,000 units.

• Combined activity starts rose 8.8 percent in the West.

• While this was the second month that new permit activity topped the million mark, overall building permits dropped 3.1 percent to 1.007 million units in November.

• Total permit issuance fell in the West by 0.4 percent.