US home construction rose 3.6% in May as builders battled a surge in lumber prices that have made homes more expensive.

A carpenter aligns a beam for a wall frame at a new house site in Madison County, Miss., Tuesday, March 16, 2021. (Photo: AP)

The May increase left construction at a seasonally adjusted annual rate of 1.57 million units, the Commerce Department reported Wednesday.

Applications for building permits, looked to for indications of activity ahead, fell 3% in May to a seasonally adjusted annual rate of 1.68 million units.

Housing has been one of the standout performers during the pandemic-triggered recession.