Housing Starts are a key indicator of the overall health of the U.S. economy because they create a substantial “ripple effect” into other sectors. Here’s how:
What is the Housing Starts report? A “start” in construction is when excavation of a building’s foundation begins. This report measures the number of residential units on which construction begins each month.
What’s happened recently? The Commerce Department reported that July Housing Starts approached eight-year highs, and were up nearly 10 percent from July of last year. This is a great signal that the housing sector remains a bright spot in our overall economic recovery.
What’s the bottom line? New construction means a rebound in jobs related to housing, which is good news for the labor market, retail sales and the economy in general. This can also mean some needed relief to renters and homebuyers frustrated by the shortage in housing, which has caused rents and sales prices to increase dramatically in recent years.
I’ll continue to monitor housing and other economic reports closely, but if you have any immediate questions, please call or email today.