Housing Starts

What are 'Housing Starts'

Housing starts are 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.

BREAKING DOWN '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. Building Activity Indicators

    Economic reports that tell investors about the current and projected ...
  2. Construction Spending

    An economic indicator that measures the amount of spending towards ...
  3. Housing Bonds

    Debt securities issued by state or local governments to raise ...
  4. House Poor

    A situation that describes a person who spends a large proportion ...
  5. Manufactured Housing - MH

    A housing unit constructed primarily off-site prior to being ...
  6. Foreclosure Prevention Act of 2 ...

    A housing act that is designed to help families keep homes that ...
Related Articles
  1. Forex

    Home Sales

    Economic indicators can have a huge impact on the market. Getting to know them is essential for forex traders.
  2. Retirement

    Economic Indicators: Housing Starts

    By Ryan Barnes Release Date: On or around the 17th of the month Release Time: 8:30am Eastern Standard Time Coverage: ...
  3. Credit & Loans

    Top US Housing Market Indicators

    A quick overview of the top economic indicators to track the housing market in the US.
  4. Retirement

    Economic Indicators: Existing Home Sales

    By Ryan Barnes Release Date: Fourth week of the month Release Time: 8:30am Eastern Standard Time Coverage: Previous month's ...
  5. Home & Auto

    5 Ways an Open House Can Actually Hurt Your Home Sale

    Open houses have long been a way to get exposure for a home that's up for sale. But it turns out it may be more trouble than it is worth.
  6. Personal Finance

    4 Reasons Why the Housing Recovery Will Be Short-lived (LOW, HD)

    Evidence would suggest that the same culprits from 2008 and some new ones are re-inflating a housing bubble.
  7. Home & Auto

    Why Housing Costs Shouldn't Exceed 30% of Your Budget

    Financial experts will argue that there’s no problem with allocating 50% of your net income to housing, but that barely leaves enough money for living comfortably. Reducing housing expenses to ...
  8. Personal Finance

    The Canadian Economy, At A Glance

    The 12 economic indicators described here together provide a comprehensive picture of the state of the Canadian economy.
  9. Home & Auto

    The Best Day and Month to List Your Home

    Want to make a quicker sale? Get your house on the market this spring and pick the perfect day of the week to attract buyers.
  10. Investing News

    The Best ETFs to Play 2015's Housing Rebound

    Housing starts will likely rise about 20% this year, reviving the recovery. Stocks and ETFs have already begun to move.
RELATED FAQS
  1. What's the difference between housing starts and building permits?

    Both housing starts and building permits are economic indicators used to assess the health of the housing market, but their ... Read Answer >>
  2. Is there a correlation between inflation and house prices?

    There is a correlation between inflation and house prices - in fact there are correlations between inflation and any good ... Read Answer >>
  3. How does a decline in housing prices affect the banking sector?

    Learn about the affects on banks when housing prices go down, including loan delinquency rates, mortgage foreclosures, and ... Read Answer >>
  4. What economic indicators should an investor in the real estate sector consider?

    Find out about economic indicators and which indicators investors in the real estate sector should take into account before ... Read Answer >>
  5. Is it possible to short sell real estate?

    The traditional idea of a short sale is selling something you don't have so that you can buy it back at a lower price. The ... Read Answer >>
  6. How does the law of supply and demand affect the housing market?

    Learn about the law of supply and demand, the relationship between supply and demand and how the law of supply and demand ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center