Housing Starts
Definition
Housing starts measure initial construction of residential units (single-family and multi-family) each month. A rising (falling) trend points to gains (declines) in demand for furniture, home furnishings and appliances.
How This Affects Us
Housing statistics are very important. They give a good indication on the current state of the economy. Homebuilders for the most part won’t start building a house unless it’s going to get sold. When they start building employment rises and money gets pushed back into the market. When the house gets sold everyone does well. Landscapers, refrigerator companies, washer and dryer companies, furniture companies, any industry associated with the construction, financing, finishing and furnishing of a home benefits.
Monitoring housing will give insight into how home builders, furniture companies, lumber companies, and lenders will do in the upcoming months.