Housing Starts
A monthly economic indicator measuring the number of new residential construction projects begun during the period.
What is Housing Starts?
Housing starts is a monthly economic report published by the US Census Bureau that counts the number of new residential construction projects — single-family homes and multi-unit buildings — where ground was broken during the period. It is a closely watched leading economic indicator because residential construction generates significant employment (construction workers, real estate agents, mortgage lenders) and has extensive supply chain effects on lumber, appliances, and furnishings. Housing starts are sensitive to mortgage rates, land availability, and building permit backlogs. Single-family starts and multi-family (apartment) starts have different economic implications and are often reported separately.
Example
In 2022, as the Federal Reserve raised mortgage rates from 3% to over 7%, housing starts fell sharply — from approximately 1.8 million annualized units in early 2022 to under 1.4 million by year end, a 22% decline. This contraction signaled a broader slowdown in residential investment and contributed to declining lumber prices and layoffs in construction. The housing starts data release, published around the 17th of each month, is a market-moving economic event watched closely by bond and equity investors.