Because of the high outlays are needed to start construction projects, an increase in Housing Starts implies an increase in investment, business and consumer optimism. The Housing Starts figure gives insight into consumer activity, since new home purchases typically require a large investment for consumers. Given such connections to consumer and corporate sentiment, real estate generally leads economic developments. A sharp drop in new home construction is a warning signal of economic slowdown. Conversely, a rebound in the Housing Starts paves the way for economic recovery.

View Data and Explanations from Individual Housing Reports.