Housing Starts

The Housing Starts data is an economic indicator that tracks the number of new residential construction projects initiated within a specific timeframe. This information offers valuable insights into the condition of the housing market and the overall economy, as housing starts generally align with economic growth, employment levels, and consumer spending. A decrease in housing starts indicates a slowing economy, while an uptick in housing activity can help revitalize an economy in decline.

Housing starts are regarded as a leading indicator, meaning they can identify future trends in the economy.

Housing starts are determined by the number of new residential construction projects, including single-family homes, apartments, and condominiums, that have commenced within a particular month. The data is typically categorized into three segments:

• Single-Family Housing Starts: The count of new single-family homes that have begun construction.
• Multi-Family Housing Starts: The number of new multi-family residential buildings, such as apartments and condominiums, that have started construction.
• Total Housing Starts: The aggregate number of single-family and multi-family housing starts.

The Housing Starts data is closely linked to other housing market indicators, such as building permits and new home sales, which provide further context for evaluating the state of the housing market.

The Housing Starts data is typically presented as a seasonally adjusted annual rate (SAAR), which indicates the total number of housing starts projected over a year if the current month's pace continues. The report may also feature month-over-month and year-over-year percentage changes in housing starts, facilitating easy trend comparisons over time.

When analyzing the report, it is crucial to consider factors like seasonal fluctuations and regional variations in housing activity. Additionally, housing starts can be volatile from month to month, so examining longer-term trends can provide a clearer understanding of the underlying dynamics of the housing market.

The Housing Starts report holds significance for several reasons:

• Economic Health: Housing starts are closely linked to economic growth, as a rise in residential construction typically signifies a robust economy and increasing demand for homes. Conversely, a drop in housing starts can indicate economic weakness.
• Employment: The housing market is a major source of employment, both directly through construction jobs and indirectly through related industries. An increase in housing starts can lead to job creation, while a decrease can result in job losses.
• Consumer Spending: Housing starts significantly influence consumer spending, as new home construction often drives demand for home furnishings, appliances, and other related goods and services.

The Housing Starts report is published by the U.S. Census Bureau and the Department of Housing and Urban Development. The data is gathered through the Building Permits Survey and the Survey of Construction, which collect information from thousands of permit-issuing authorities and construction contractors nationwide.

The Housing Starts report is released monthly, typically around the middle of the month following the reporting period. The data is accessible on the Census Bureau’s website and through various financial news outlets and data providers.