Housing Starts — Historical Chart
HOUSTHousing starts measure new residential construction activity — a leading economic indicator. Construction jobs and downstream spending (appliances, furniture) make housing a key GDP driver.
Related — Housing & Real Estate
SOURCE: FEDERAL RESERVE ECONOMIC DATA (FRED) · 0 OBSERVATIONS
Housing starts measure the number of new residential construction projects begun in a month. As one of the most rate-sensitive sectors of the economy, housing leads broader economic cycles by 6-12 months — making housing starts a reliable leading indicator of recessions and recoveries.
Related Economic Indicators
Frequently Asked Questions
- What are housing starts?
- Housing starts count the number of new residential construction projects that began in a given month. Published monthly by the Census Bureau, they include single-family homes, apartment buildings, and other residential units.
- Why are housing starts a leading economic indicator?
- Housing is one of the most interest rate-sensitive sectors. Construction begins early in the economic cycle and triggers a cascade of spending — materials, appliances, furniture, landscaping. Falling housing starts typically precede economic weakness by 6-12 months.
- What is a "normal" level of housing starts?
- The US requires approximately 1.5 million new units per year to keep pace with household formation and replace aging housing stock. Starts below 1 million signal severe contraction (as in 2008-2012); above 1.7 million indicate a boom.
- How do mortgage rates affect housing starts?
- Higher mortgage rates directly reduce new home demand, causing builders to pull back. When the 30-year mortgage rate rose from 3% to 7% in 2022-2023, housing starts fell sharply from post-COVID highs, leading to construction sector layoffs.
Economic data sourced from the Federal Reserve Bank of St. Louis (FRED). Data is updated according to the release schedule of the issuing agency. Provided for informational purposes only and does not constitute investment advice.