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Housing starts fell 14.4 percent in August.
An index measuring builder sentiment is at its highest point since October 2005, buoyed by wage gains.
Overseas companies are developing properties in hot markets with an eye toward Chinese and US buyers.
More multi-unit buildings in big areas means the 'recovery is now creating more new renters than first-time homebuyers,' Trulia says.
By MSN Partner
Renewed strength in housing market could boost economy.
The index of builder confidence has hit its highest level in seven months.
Residential construction lags as builders cite high costs and bureaucracy.
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