But single-family construction fell two-tenths of 1 percent, to an annual rate of $113.1 billion.
In addition, single-family construction - 80 percent of total starts - reached a two-year high.
That included a drop of 1.1 percent in single-family construction, to $111.5 billion, and a 2.2 percent decline in apartment building, to $22.7 billion.
The city has since then experienced quick growth centered primarily around single-family residential construction.
The rebound in housing has lifted single-family construction back to the levels enjoyed during the 1980's.
There is little room for new single-family construction.
Analysts said single-family construction would remain weak as the economy continued to slow.
Analysts said single-family construction should continue at a moderate pace the rest of the year.
Most new single-family construction today is of better quality houses at increasing distances from the central cities of large metropolitan areas.
But the May activity was concentrated in single-family construction.