Housing Starts MoM
What is Housing Starts MoM?
The Housing Starts report, released monthly by the US Census Bureau and Department of Housing and Urban Development (HUD), measures the number of new residential construction projects begun during the month. It includes single-family homes and multi-unit buildings. Building Permits — also released in the same report — measure authorizations for new construction and serve as a leading indicator of future starts.
Why does it matter for investors?
Residential construction directly contributes to GDP through investment in structures. Housing starts also drive employment in construction, real estate, and related industries. A sharp decline in starts can signal broader economic weakness. Building permits lead starts by 1–2 months, making them a valuable forward-looking gauge. Rising starts alongside falling mortgage rates confirm a housing recovery.
What to watch for
- ›Housing Starts MoM change vs. consensus estimate
- ›Building Permits (leading indicator, released simultaneously)
- ›Single-family vs. multi-family split — single-family drives consumer wealth effect
- ›Regional data: South and West account for the majority of US construction
- ›Trend vs. 1-million-unit threshold: below signals housing contraction
What is the difference between Housing Starts and Building Permits?
Building Permits are authorizations issued by local governments before construction begins — they lead Housing Starts by 1–2 months. Housing Starts measure when ground is actually broken on a new home. Permits are generally considered a better forward indicator.
When are Housing Starts released?
Housing Starts and Building Permits are released monthly by the Census Bureau at 8:30 AM Eastern Time, typically around the 17th–19th of the month for the prior month's data.
Market Reaction
QQQ & SPY price change ±5 trading days around this event
Source: Yahoo Finance