Housing Starts
Housing starts measure the number of new residential construction projects that have begun during a specific period.
Meaning in Practice
The indicator tracks the initiation of new housing units, including single-family and multi-family properties. It is typically released monthly and reflects construction sector activity. Housing starts are sensitive to interest rates and credit conditions.
Why It Matters
Housing activity influences employment, consumer spending, and investment. Rising housing starts signal economic confidence and expansion. Declines may indicate tighter financial conditions or weaker demand.
Market Impact
Strong housing data can support construction and real estate stocks. Bond yields may rise if growth expectations improve. Weak figures can weigh on cyclical sectors.
Example
If 1.5 million new homes begin construction in a year, that figure represents annual housing starts.