Housing and construction statistics yield important information for business decision-makers. Economists quote U.S. construction statistics, particularly housing statistics, as a key to how well the economy is doing. Housing starts are considered one of ten important leading indicators that the U.S. government uses to predict economic activity six to nine months in the future.

Investors, builders and other business owners rely on other kinds of construction industry statistics to gauge the health of a local economy, such as commercial construction statistics showing the number of office buildings constructed in a given area, for example. Other data gives more specific information such as the types of buildings constructed or materials used. Subcontractors rely on house building statistics to find individual jobs for builders or upcoming public projects.

Here are some ways to make effective use of construction industry statistics.

1. Get familiar with housing and construction statistics basics by reading the reports on a regular basis.

2. Use statistics on home construction to find out who are the top builders, what they're building, where they're building and why.

3. Refer to commercial construction statistics before planning a major business relocation.

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Use home construction stats to help your business run effectively

Statistics on housing construction help paint an accurate picture of the health of the U.S. economy. Homebuilder statistics can also be a goldmine of information for contractors looking for building opportunities or suppliers projecting their orders for the coming year.

I recommend: McGraw Hill Construction gives statistics as well as projections for future building activity. Weblinks gives you quick access to housing construction statistics, including government statistics and state-by state links.

Get leads on commercial projects through construction stats

While you're waiting for the phone to ring with your next commercial building job, why not research the leads yourself through the many resources available for the trades? Commercial construction statistics can alert you to potential jobs that are available for bidding and help get you up to speed on building codes and practices as well.

I recommend: Reed Construction Data can help you find construction project leads in your area. A Constructionwire subscription can aid you in the bidding process for public projects.

Consult construction industry statistics to help your company grow

International companies use construction statistics when researching potential building sites around the world. These valuable statistics allows businesses to expand their operations in areas favorable to business.

I recommend: Market Research offers paid access to reports with building statistics you can use to grow your business. Site Selection offers a snapshot of potential building sites as well as world construction statistics.

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• •  Local housing statistics can also be useful, such as the real estate transfers that are listed in the local newspapers, which can tell you the average selling price for real estate.

For business owners looking to expand or start anew, knowing the housing and construction statistics of an area will prove invaluable. Housing statistics can illustrate how much new construction has taken place from year to year and enable you to analyze the housing market of an area compared to the rest of the nation.

By carefully analyzing construction industry statistics, you can get a keen insight into your potential business market. House construction statistics and commercial construction statistics can give you insights into:

1. The growth potential of the area. If commercial construction statistics show more people are moving in, it could be a great place for a future business.

2. The economic viability of the area. If home construction statistics include evidence that residents can afford to pay for new houses, it could be a good sign of the potential wealth of the area.

3. The availability of commercial real estate. It will increase your bargaining power if you know the commercial construction statistics before you make your purchase.

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Use government reports to find housing construction statistics

The federal government keeps close tabs on U.S. construction statistics and is a great source for world housing statistics as well. There are several agencies that can give you an insight into the market.

I recommend: The U.S. Census has several reports including the number of building permits issued, housing starts and housing completions. Construction employment from the Bureau of Labor Statistics can give you a good idea of the health of the construction market. When employment is good, so too is the rest of the business. If you are looking for specific information about a certain state, try contacting the Housing and Urban Development office in the state of interest.

Use national associations and businesses to find statistics on home construction

Construction associations and research firms are great outside sources to help you find homebuilder statistics. Often times these sources are more user-friendly than the government studies, but you may have to pay for them.

I recommend: The National Association of Homebuilders has several reports on house building statistics. The National Association of Realtors tracks home construction statistics and puts the numbers into perspective for potential homebuyers. Companies like Real Capital Analytics, for a fee, will let you use their powerful search engines to break down the construction statistics in which you are most interested.

Find foreclosure data to give you insight into the housing market

The number of foreclosures in an area almost always directly impacts the area's housing and construction statistics. If a market is saturated with foreclosures, typically the amount of new construction in that area falls. As those homes are absorbed by the market, new construction often picks up. Foreclosure data will give you a good insight into the area's potential.

I recommend: The Mortgage Bankers Association is a great place to find information on foreclosure rates and mortgage delinquencies. RealtyTrac keeps close tabs on national foreclosure rates and releases its information through press releases.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Finding statistics on housing construction should just be the starting point of your research into a potential market. Talk to the area's chamber of commerce to get more statistics and information that you will need.
• •  If you are very interested in office construction statistics, remember that construction stats can change as quickly as the market trends in a particular area.

With housing and construction statistics education and training, you or your company can maintain a watchful eye on key economic indicators. Even if you're not in the construction industry, housing construction statistics provide a salient view of whether the macroeconomic conditions are positive or negative. These conditions indirectly influence the balance sheets of almost every business. While the training that deals exclusively with house building statistics is sparse, many online resources are available that can help you understand the process.

To make any housing and construction statistics education and training work for your company, it's prudent to use reputable industry resources. Building associations and institutes are an excellent resource for housing statistics. Government entities as well as private research firms can also provide relevant residential and commercial construction statistics. However, before you begin the process there are few items to consider:

1. Review the available construction industry statistics training programs.

2. Keep track of the latest homebuilder statistics.

3. Register to receive statistics on housing construction from private research firms.

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Examine the construction stats training courses at industry associations and institutes

The statistics on home construction can be somewhat confusing to someone that doesn't work in the industry. Industry associations and institutes can help alleviate this issue. Whether it's construction estimation or evaluating the construction stats, it's important to know the derivation of these statistics.

I recommend: Contact the National Association of Home Builders about the educational resources that they offer. Review the home construction statistics courses at the Construction Estimating Institute.

Use the online house construction statistics to obtain the latest industry information

Having the latest construction stats can help your company stay ahead of the informational learning curve. This information will give you an idea of how the housing market as a whole is functioning. If you need local information for your city or neighborhood, it's best to contact your local real estate agent for that type of detailed information.

I recommend: Evaluate the latest residential construction data from the Census Bureau. Utilize the construction statistics available from the US Business Reporter to spot trends in the industry. Review the educational tools available from National Association of Realtors.

Employ the services of a research firm to obtain customized US construction statistics

Research firms that specialize in the construction industry can provide statistics that meet your individual needs. Therefore, rather than relying on the general data that the government or other associations offer, you or your company can commission a firm to find information that's relevant to your educational needs.

I recommend: Speak to a representative at Plunkett Research or Ibis World about purchasing a customized construction industry statistics report.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Before enrolling in a housing construction statistics course, it's best to take a introduction to statistics class in order to establish a proper knowledge base.

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.

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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.

I recommend: 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.

I recommend: 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.

I recommend: 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.

I recommend: 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.

I recommend: 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.

I recommend: Review the scope and purpose of the Federal Housing Administration.