Definition
Housing starts are new construction projects beginning. Rising starts indicate builder confidence; falling starts suggest caution. Starts are leading indicators of future housing supply and economic health.
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Find my pathAbout this term
Housing starts are an important economic indicator tracked by the U.S. Census Bureau and reported monthly. Rising housing starts indicate builder confidence and expanding supply, while declining starts suggest economic uncertainty and constrained supply growth. Housing starts data is used to forecast future housing supply and understand construction industry health. High housing starts can eventually increase supply and moderate prices, while low starts may result in supply constraints and price increases.
Pro Tip
Monitor housing starts in your region. Rising starts eventually increase supply and can moderate prices.
Example
A report shows housing starts increased 15% year-over-year in a metropolitan area, indicating builder confidence and expanding construction activity.