New Residential ConstructionNew Residential Construction

Published by: Bureau of the CensusPublished by: Bureau of the Census Frequency: monthlyFrequency: monthly Period Covered: prior monthPeriod Covered: prior month Volatility: moderateVolatility: moderate Market significance: moderate to highMarket significance: moderate to high Web site: www.census.govWeb site: www.census.gov

What is it?What is it? Tracks how many new single-family homes or buildings were Tracks how many new single-family homes or buildings were

constructed throughout the month. constructed throughout the month.

Most of the housing start data is collected through Most of the housing start data is collected through applications and permits for building homes. The housing start applications and permits for building homes. The housing start data is offered in an unadjusted and a seasonally adjusted data is offered in an unadjusted and a seasonally adjusted format.format.

Information on housing starts and building permits is collected Information on housing starts and building permits is collected on separate surveys.on separate surveys.

Starts and permits are classified by the number of units and Starts and permits are classified by the number of units and by regions. The regions are northwest, south, midwest, and by regions. The regions are northwest, south, midwest, and west. west.

Unit categories include single-family and multifamily housing.Unit categories include single-family and multifamily housing.

What is it in the report?What is it in the report?

Information about:Information about:• Building permits: Privately owned housing units Building permits: Privately owned housing units

authorized by building permitsauthorized by building permits

• Housing starts: Privately owned housing startsHousing starts: Privately owned housing starts

• Housing completions: Privately owned housing Housing completions: Privately owned housing completions. completions.

Why is it important?Why is it important?

Key release from the supply side, its Key release from the supply side, its importance rises around turning points in importance rises around turning points in the business cycle.the business cycle.

Permits is a leading indicator of economic Permits is a leading indicator of economic activity.activity.

Housing is an important sector of the Housing is an important sector of the economy. Housing accounts for about economy. Housing accounts for about 42% of a household’s budget.42% of a household’s budget.

Keys to Interpreting the DataKeys to Interpreting the Data

Focus in the single-family sector, it dominates Focus in the single-family sector, it dominates the residential housing market.the residential housing market.

Pay close attention to regional changes.Pay close attention to regional changes.

Be aware of weather anomalies.Be aware of weather anomalies.

Notice that housing starts and building permits Notice that housing starts and building permits present a cyclical behavior.present a cyclical behavior.

Latest ReleaseLatest Release

BUILDING PERMITS Privately-owned housing units authorized by building

permits in March were at a seasonally adjusted annual rate of 1,544,000. This is 0.8 percent (±1.0%)* above the revised February rate of 1,532,000, but is 25.9 percent (±0.9%) below the March 2006 estimate of 2,085,000.

Single-family authorizations in March were at a rate of 1,114,000; this is 1.4 percent (±0.9%) above the February figure of 1,099,000. Authorizations of units in buildings with five units or more were at a rate of 358,000 in March.

Latest ReleaseLatest Release

HOUSING STARTS Privately-owned housing starts in March were at a

seasonally adjusted annual rate of 1,518,000. This is 0.8 percent (±11.3%)* above the revised February estimate of 1,506,000, but is 23.0 percent (±5.4%) below the March 2006 rate of 1,972,000.

Single-family housing starts in March were at a rate of 1,218,000; this is 2.0 percent (±10.5%)* above the February figure of 1,194,000. The March rate for units in buildings with five units or more was 262,000.

Latest ReleaseLatest Release

HOUSING COMPLETIONS Privately-owned housing completions in March were at a

seasonally adjusted annual rate of 1,632,000. This is 0.7 percent (±7.7%)* below the revised February estimate of 1,643,000 and is 25.9 percent (±5.2%) below the March 2006 rate of 2,203,000.

Single-family housing completions in March were at a rate of 1,329,000; this is 1.5 percent (±9.3%)* above the February figure of 1,309,000. The March rate for units in buildings with five units or more was 264,000.

Historical DataHistorical Data

-.4

-.3

-.2

-.1

.0

.1

.2

1999 2000 2001 2002 2003 2004 2005 2006

@PCHY(HOUSINGSTARTS)

80

100

120

140

160

180

200

1999 2000 2001 2002 2003 2004 2005 2006

HOUSINGSTARTS

Data AnalysisData Analysis

Based on the information from this Based on the information from this indicator, we conclude:indicator, we conclude: Housing market is clearly cooling off.Housing market is clearly cooling off. We do not foresee inflationary pressures from We do not foresee inflationary pressures from

the housing market. the housing market. Since this is considered a leading economic Since this is considered a leading economic

indicators, we anticipate no improvement in indicators, we anticipate no improvement in economic performance in the near future. economic performance in the near future.