Demand for housing kept U.S. builders busy last month, pushing the number of new home construction projects to a five month high.

The U.S. Commerce Department said Tuesday so-called new housing starts increased 14.6 percent from May to June, led by a jump in construction on multi-family homes.

The report said the number of permits for new home construction projects also rose, increasing by 2.5 percent over the month before.

Top U.S. officials have said the collapse of the country's housing market was one of the key factors behind the recession. They say a healthier housing market is needed to ensure a smoother economic recovery.