What it is:
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.