Housing Starts

AAA

DEFINITION of 'Housing Starts'

The number of new residential construction projects that have begun during any particular month. The New Residential Construction Report, commonly referred to as "housing starts," is considered to be a critical indicator of economic strength. Housing start statistics are released on or around the 17th of each month by the U.S. Commerce Department. The report includes building permits, housing starts and housing completions data. Surveys of homebuilders nationwide are used to compile the data.

INVESTOPEDIA EXPLAINS 'Housing Starts'

Investors and analysts watch the housing starts figures each month, comparing them with previous months' data and year-over-year periods. Because housing starts can be significantly affected by weather, the numbers are also presented as seasonally adjusted and smoothed using statistical formulas. The housing starts data are often revised to reflect the most current evaluations. Housing is a key part of the U.S. economy, which has an effect on related industries, such as banking, the mortgage sector, raw materials, employment, construction, manufacturing and real estate. In a strong economy, people are more likely to purchase new homes; conversely, in a weak economy, people are less likely to buy new homes.

RELATED TERMS
  1. Indicator

    Indicators are statistics used to measure current conditions ...
  2. NAHB/Wells Fargo Housing Market ...

    An index based on a monthly survey of members belonging to the ...
  3. Department of Commerce

    The cabinet department in the U.S. Government that deals with ...
  4. Housing Unit

    One of a house, apartment, mobile home, group of rooms or single ...
  5. Economy

    The large set of inter-related economic production and consumption ...
  6. Lion economies

    A nickname given to Africa's growing economies.
RELATED FAQS
  1. How do open market operations affect the money supply of an economy?

    The open market operations conducted by the Federal Reserve affect the money supply of an economy through the buying and ... Read Full Answer >>
  2. Why are economists interested in the consumer surplus?

    Economists are interested in consumer surplus because it measures economic welfare, plays a large part in changing market ... Read Full Answer >>
  3. What economic indicators are important to consider when investing in the chemicals ...

    The most important economic indicators to consider when investing in the chemicals sector are economic growth, interest rates, ... Read Full Answer >>
  4. What economic factors affect the performance of the consumer packaged goods industry?

    Three of the primary economic factors that influence the performance of companies in the consumer packaged goods (CPGs) industry ... Read Full Answer >>
  5. What's the most accurate way to find out a nation's nominal GDP?

    The data for gross domestic product, or GDP, is compiled by statistical governmental agencies in each country and is aggregated ... Read Full Answer >>
  6. What are some examples of ways that sensitivity analysis can be used?

    Sensitivity analysis is an analysis method that is used to identify how much variations in the input values for a given variable ... Read Full Answer >>
Related Articles
  1. Investing

    How Investors Can Screen For Stock Ideas

    Find out how to pick your own investments like a pro.
  2. Investing

    The Case For Stocks Today

    Last week, U.S. equities advanced with the S&P 500 Index notching new records. Investors are now getting nervous with rate and currency volatility spiking.
  3. Investing

    Which Dow Jones Stocks are Safe? Which are Risky?

    In a situation where our sustained bull run could turn into a sell-off rather quickly, here are four somewhat safe Dow stocks and four to be wary of.
  4. Economics

    The Big Chill: What’s Wrong With The U.S. Consumer

    Based on the most recent April data, investors may, once again, be disappointed when the second-quarter gross domestic product (GDP) report comes in.
  5. Economics

    How To Calculate The GDP Of A Country

    We explain how to calculate the GDP of a country using two different approaches.
  6. Economics

    Infrastructure Investment & Institutional Reforms

    There has been a lot of buzz in the market lately about the prospect for growth and stability in Latin America.
  7. Investing

    Fundamentals Of How Brazil Makes Its Money

    While it has an abundance of resources, including people, Brazil needs to begin to refocus its management and development strategies.
  8. Economics

    How Is The GDP Of India Calculated?

    India is a front-runner among developing economies. Investopedia explains how India calculates its GDP, an indicator of economic health and performance.
  9. Investing

    How India Makes Money

    India currently has the ninth largest nominal GDP (and third largest in PPP) in the world.
  10. Economics

    How China Makes Money

    China has the first or second largest GDP in the world but is not nearly as developed as others in the top 10.

You May Also Like

Hot Definitions
  1. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  2. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  3. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  4. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  5. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center