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The number of new homes that began construction - a leading economic indicator.
Why It Matters
Housing is a massive part of the economy - construction jobs, appliances, furniture, mortgages. Housing starts are a leading indicator: when builders break ground, they're betting on future demand. Before the 2008 crash, housing starts collapsed, warning of trouble. Rising rates in 2022 crushed housing starts, signaling economic slowdown.
Key Points
- Reported monthly by the Census Bureau
- Very sensitive to mortgage rates - higher rates = fewer starts
- Home Depot, Lowe's, and homebuilder stocks track housing starts closely
Related Terms
Common Questions
The number of new homes that began construction - a leading economic indicator. Housing is a massive part of the economy - construction jobs, appliances, furniture, mortgages. Housing starts are a leading indicator: when builders break ground, they're betting on future demand.
Housing is a massive part of the economy - construction jobs, appliances, furniture, mortgages. Housing starts are a leading indicator: when builders break ground, they're betting on future demand. Before the 2008 crash, housing starts collapsed, warning of trouble. Rising rates in 2022 crushed housing starts, signaling economic slowdown.
Reported monthly by the Census Bureau
Very sensitive to mortgage rates - higher rates = fewer starts
Home Depot, Lowe's, and homebuilder stocks track housing starts closely