Total housing starts nationwide reached 999,000 in December, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. That makes it the third-highest monthly level of production last year, said NAHB's Chair, Rick Judson. "This rate is in line with our builder surveys, and tells us we are seeing a return to trend after a strong November."

NAHB's Chief Economist, David Crowe observed that overall production was up 18 percent last year, over 2012. "As pent up demand is unlocked and the labor market improves, we anticipate that 2014 should be an even better year for home construction," he said. "That's good news for economic growth, as each new home that's built creates three full-time jobs and contributes to the tax base of local communities."

There were 667,000 single family housing starts in December, the second-highest monthly total for single family starts last year. 

Regionally, the West saw a combined increase of 15 percent for single and multifamily housing production and gained 10.5 percent in permit activity for December.