US housing starts rose 10.8% in March to a 1.5 million annualized pace, the highest in over a year, with single-family starts up 9.7% to 1.03 million, Census Bureau data showed. The gain suggests stabilization as builders offer incentives despite affordability concerns. However, the Iran war is raising materials costs and mortgage rates. Building permits fell to 1.37 million, the lowest since August, with single-family permits down 3.8%. Starts increased across all regions, led by the Northeast.