Short answer. Housing starts are the count of new privately-owned residential construction projects begun in a given period, reported monthly by the U.S. Census Bureau. The data is the leading indicator of new-home supply.
Housing starts measure the beginning of new residential construction projects. The Census Bureau's Survey of Construction has tracked starts monthly since 1959.
What counts as a "start"
A housing start is recorded when excavation begins for the foundation of a new residential building. The unit is counted regardless of whether the building is for sale, for rent, or owner-built. The series excludes manufactured housing, which the Census tracks separately.
Single-family vs. multifamily
Total housing starts are split into single-family (typically 65-75% of total) and multifamily (5-or-more-unit buildings, the remainder). Single-family starts track owner-occupied housing demand and mortgage rates closely; multifamily starts track rental-market dynamics, urban-population growth, and apartment investor sentiment.
Recent levels
- 2024: 1.36M total starts (931K single-family + 433K multifamily)
- 2023: 1.42M
- 2022: 1.55M
- 2005: 2.07M (cycle peak)
- 2009: 554K (absolute trough since 1959)
Why housing starts matter
Housing starts are the dominant leading indicator of new-home sales 6-12 months later, and a key signal of broader economic conditions. The Federal Reserve, NAHB, and most market analysts watch monthly starts data closely. Building permits — the Census Bureau's authorization-stage data — leads starts by another 1-2 months and is even more leading-indicator-oriented.
Sources
U.S. Census Bureau Survey of Construction; National Association of Realtors Existing Home Sales report; Freddie Mac Primary Mortgage Market Survey; National Bureau of Economic Research Business Cycle Dating Committee.