Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Housing Starts

What it is:

Housing starts is a measure of new private homes built during a given month.  This statistic is viewed as a key economic indicator reflecting the state of the economy.

How it works (Example):

Homes are usually purchased from a previous homeowner. Some buyers, however, choose to purchase newly constructed homes or to pay to have a home designed and built for them.  The new housing starts indicator shows the number of new homes being built.

Why it Matters:

The housing starts figure indicates the demand for newly built homes. A strong housing start measurement is a key indicator of economic well-being, since it reflects healthy levels of employment and consumer confidence.  In addition, building new homes increases demand for construction workers as well as other workers as well as materials.  Housing and construction efforts are economic drivers helping strengthen the economy.