Housing and Construction Statistics Key Terms

Study housing construction statistics key terms to spot trends in the real estate market

Whether you're in real estate business or not, housing and construction statistics represent an important economic indicator. For instance, housing and construction statistics that are trending in a positive direction signal a strong and growing economy and this in turn helps with future business projections and planning efforts. To interpret these statistics, however, you need to understand the key terms. While these key terms won't make you an economist overnight, they will provide a solid knowledge base on which to build.

 

New Residential Construction Index

The New Residential Construction Index represents the number of new home builds started within the last month. An increase in new residential construction can represent a strong demand for new homes and a burgeoning economy.
Try: Review the New Residential Construction Index tutorial available at the United States Census Bureau.

Single family housing starts

Single family housing starts is the amount of housing construction starts for single family homes in a given month. This construction and housing statistic exclude apartments, commercial and office building starts. A single family house must have open spaces on all sides of the house.
Try: Examine the article on single family housing starts at the Housing Market Monitor. For a definition of a single family dwelling, review the data at Teach me Finance.

Multifamily Market Indices

The Multifamily Market Indices track the amount of multifamily housing construction that takes place during a set time period, usually by each month.
Try: Evaluate the housing and construction statistics resources available at the National Association of Home Builders.

U.S. Department of Housing and Urban Development

The U.S. Department of Housing and Urban Development helps track all housing and construction statistics throughout the United States. If you have any specific questions or information needs, this governmental agency is a great resource.
Try: Study the mission statement for the U.S. Department of Housing and Urban Development.

Pending Home Sales Index

The Pending Home Sales Index measures the number of houses that are under contract but haven't actually sold. This statistic will give you an idea of housing demand at any given time as you compare data from one period to another.
Try: Study the Pending Home Sales Index information offered by the National Association of Realtors.

Federal Housing Administration

The Federal Housing Administration is the governmental agency responsible for promoting, regulating and monitoring home sales and construction within the United States.
Try: Review the scope and purpose of the Federal Housing Administration.

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