What does the term 'housing starts' refer to in construction?

The term 'housing starts' specifically refers to the commencement of construction of residential dwelling units. This metric is crucial for understanding the health of the housing market, as it indicates new supply entering the market. Tracking housing starts provides insights into trends in construction activity, demand for housing, and the overall economic climate.

When builders break ground on new homes, it counts as a housing start, reflecting the initial stage of the construction process. This information is essential for policymakers, investors, and economists who analyze market conditions and future growth potential in the residential sector. In contrast, the other options describe different stages or aspects of housing development but do not represent the initiation of construction itself.