Housing Starts

Written By
Paul Tracy
Updated November 4, 2020

What is Housing Starts?

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 Does Housing Starts Work?

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 Does Housing Starts Matter?

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.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Housing Starts.
Be the first to ask a question

If you have a question about Housing Starts, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Housing Starts, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Housing Starts

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms