As an integral part of the U.S. economy, the residential construction industry is a key indicator of economic health. The measure New Privately-Owned Housing Units Under Construction: Total Units (UNDCONTSA), provides valuable insights into the state of this industry. This metric, monitored and released by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, offers a snapshot of the number of new housing units under construction owned by private entities. It serves as a valuable tool for economic analysts, policymakers, investors, and real estate professionals, providing a glimpse into the pulse of the housing market and the broader economy.
The UNDCONTSA metric refers to the total number of new privately-owned housing units currently under construction. A "housing unit" can be a house, an apartment, a mobile home, a group of rooms, or a single room intended as a separate living quarter. The key aspect is that these units are "privately-owned," meaning they are owned by private entities or individuals, not by the government. The term "under construction" denotes that these units are in the process of being built. This does not include units that are planned or permitted but where construction has not yet begun. It also does not include units where construction has been completed. The figures are reported monthly, providing a regular and up-to-date overview of activity in the residential construction sector. They are also seasonally adjusted. This means that the numbers are corrected for regular seasonal variations, such as slowdowns in construction activity during winter months, making it easier to observe underlying trends and cycles.
The number of new privately-owned housing units under construction is a vital indicator of the health of the housing market and the broader economy. When the economy is strong, and consumer confidence is high, more people are likely to invest in building new homes. Conversely, a decrease in this number can indicate economic slowdown or a lack of confidence in future economic conditions. In addition to reflecting economic conditions, this measure can also influence them. Residential construction contributes to economic growth by creating jobs, stimulating demand for materials and services, and generating new property tax revenue.