The Housing Starts data is an economic indicator that measures the number of new residential construction projects started within a given period.
This data provides valuable insights into the health of the housing market and the broader economy, as housing starts typically correlate with economic growth, employment, and consumer spending.
Declining housing starts show a slowing economy, while increases in housing activity can pull an economy out of a downturn.
Housing starts are considered to be a leading indicator, meaning it detects trends in the economy looking forward.
What is Housing Starts data?
Housing starts are calculated based on the number of new residential construction projects, such as single-family homes, apartments, and condominiums, that have begun within a specific month.
The data is typically broken down into three categories:
- Single-Family Housing Starts: The number of new single-family homes that have started 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 combined number of single-family and multi-family housing starts.
The Housing Starts data is closely related to other housing market indicators, such as building permits and new home sales, which provide additional context for analyzing the state of the housing market.
How to Read the Housing Starts data
The Housing Starts data is usually presented as a seasonally adjusted annual rate (SAAR), which represents the total number of housing starts that would occur over a year if the current month’s pace were to continue.
The report may also include month-over-month and year-over-year percentage changes in housing starts, allowing for easy comparison of trends over time.
When analyzing the report, it is important to consider factors such as seasonal variations and regional differences in housing activity.
Additionally, housing starts can be volatile from month to month, so it is often helpful to examine longer-term trends to gain a better understanding of the underlying dynamics of the housing market.
Why is the Housing Starts data important?
The Housing Starts report is important for several reasons:
- Economic Health: Housing starts are closely tied to economic growth, as increased residential construction typically indicates a strong economy and growing demand for homes. Conversely, a decline in housing starts can signal economic weakness.
- Employment: The housing market is a significant source of employment, both directly through construction jobs and indirectly through related industries. An increase in housing starts can lead to job growth, while a decrease can result in job losses.
- Consumer Spending: Housing starts have a significant impact on consumer spending, as new home construction often leads to increased demand for home furnishings, appliances, and other related goods and services.
Who publishes the Housing Starts data?
The Housing Starts report is published by the U.S. Census Bureau and the Department of Housing and Urban Development.
The data is collected through the Building Permits Survey and the Survey of Construction, which gather information from thousands of permit-issuing authorities and construction contractors across the country.
When is the Housing Starts data released?
The Housing Starts report is released monthly, usually around the middle of the month following the reporting period.
The data is available on the Census Bureau’s website and through various financial news outlets and data providers.