Definition
Housing completions is a key statistic compiled and reported by the U.S. Census Bureau that represents the number of new housing units completed during a given period. A housing unit is considered completed when it has a roof and is ready for occupancy, meeting all local building codes and regulations.
Examples
Example 1
For January 2016, the U.S. Census Bureau reported:
- Housing Starts: 1,099,000 units
- Housing Completions: 1,057,000 units This comparison between starts and completions indicates the development pace and market conditions for that time.
Example 2
In August 2022, the report indicated:
- Housing Starts: 1,575,000 units
- Housing Completions: 1,312,000 units An increase in housing starts compared to completions suggests a potential surge in future housing availability once the started projects are finished.
Frequently Asked Questions (FAQs)
What entities compile and report housing completions data?
The U.S. Census Bureau is the primary entity responsible for compiling and reporting data on housing completions.
How are housing completions counted?
A housing unit is counted as completed when it has a roof and is ready for occupancy.
Why are housing completions important?
Housing completions are a crucial measure of construction activity and real estate development. They indicate the readiness of new housing for the market and help assess supply and demand dynamics.
How often is data on housing completions updated?
The U.S. Census Bureau typically releases data on housing completions monthly.
Can housing completions data help forecast market trends?
Yes, analyzing trends in housing completions alongside housing starts can help forecast future availability and market saturation, aiding in investment and policy decisions.
Related Terms
- Housing Starts: The number of new residential construction projects that begin during a particular period. This metric indicates the initial stage of housing development.
- Building Permits: An official approval issued by local government agencies that allows the construction or remodeling of a property. It reflects upcoming construction activity.
- New Residential Construction Survey (NRCS): A survey conducted by the U.S. Census Bureau to track new residential construction activities.
- Occupancy Certificate: A document certifying that a building is ready for occupancy and has met all relevant building codes and regulations.
- Construction Phase: The process of building a structure from start to finish. This phase includes planning, permitting, construction, and inspection.
Online Resources
- U.S. Census Bureau Housing Data:
- National Association of Home Builders (NAHB):
References
- “New Residential Construction,” U.S. Census Bureau. Link
- “Measuring Housing Supply,” National Association of Home Builders (NAHB).
Suggested Books for Further Studies
- The Housing Boom and Bust by Thomas Sowell
- Beyond the Bubble: How Technology, Entrepreneurship, and Regulation Are Transforming Real Estate by Robert Freedman
- The Economist Guide to the Housing Market by The Economist
- Real Estate Development: Principles and Processes by Mike E. Miles, Laurence M. Netherton, and Adrienne Schmitz
Real Estate Basics: Housing Completions Fundamentals Quiz
### When is a housing unit considered completed according to the U.S. Census Bureau?
- [x] When it has a roof and is ready for occupancy.
- [ ] When it is sold.
- [ ] When the foundation is laid.
- [ ] When the interior finishes are completed.
> **Explanation:** A housing unit is considered completed when it has a roof and is ready for occupancy. This indicates that the building has met all necessary regulations and is habitable.
### Which organization is primarily responsible for reporting housing completions in the U.S.?
- [ ] National Association of Builders
- [ ] Realty Corp
- [x] U.S. Census Bureau
- [ ] Bureau of Economic Analysis
> **Explanation:** The U.S. Census Bureau is the primary entity responsible for compiling and reporting housing completions data.
### What does more housing starts than completions indicate?
- [ ] A slowing pace of development.
- [x] An increasing pace of development.
- [ ] Decreased housing demand.
- [ ] No significant change in the market
> **Explanation:** More housing starts than completions typically indicate an increasing pace of development as new projects are initiated faster than they are completed.
### How frequently does the U.S. Census Bureau release housing completions data?
- [ ] Quarterly
- [ ] Biannually
- [x] Monthly
- [ ] Annually
> **Explanation:** The U.S. Census Bureau generally releases data on housing completions monthly, providing regular updates on construction progress.
### Which of the following is most related to the ability to evaluate future housing market supply?
- [x] Housing starts combined with housing completions
- [ ] Building permits alone
- [ ] Real estate listings
- [ ] Interior design trends
> **Explanation:** Evaluating future housing market supply is best done by analyzing combining housing starts with housing completions data as this insight provides both immediate and future availability estimations.
### Housing completions provide insight primarily into which market aspect?
- [ ] Mortgage interest rates
- [x] Supply and demand dynamics
- [ ] Home renovation trends
- [ ] Real estate agent performance
> **Explanation:** Housing completions give insight into the supply and demand dynamics of the housing market by indicating how many new units are available for occupancy.
### What document certifies that a building is ready for occupancy and has met all building codes?
- [ ] Housing Completions Certificate
- [x] Occupancy Certificate
- [ ] Building Permit
- [ ] Housing Starts Certificate
> **Explanation:** An Occupancy Certificate certifies that a building is ready for occupancy and has met all relevant building codes and regulations.
### Regarding the data, where would you most likely find information about future construction activity?
- [ ] Buyer remorse index
- [ ] Property tax assessments
- [x] Building Permits
- [ ] Vacation rental statistics
> **Explanation:** Building permits data is a reliable source of information for future construction activity as it shows approved plans for construction that have not yet commenced.
### How can housing completion data influence real estate investment decisions?
- [x] By indicating market supply and potential saturation
- [ ] By affecting local education systems
- [ ] Altering local tourism statistics
- [ ] Influencing the technology sector
> **Explanation:** Real estate investors can analyze housing completion data to understand market supply and potential saturation, helping inform their investment decisions.
### Which survey conducted by the U.S. Census Bureau tracks new residential construction activities?
- [x] New Residential Construction Survey (NRCS)
- [ ] Residential Trends Overview
- [ ] Housing Market Analysis Survey
- [ ] New Home Evaluation Report
> **Explanation:** The New Residential Construction Survey (NRCS) conducted by the U.S. Census Bureau captures new residential construction activities, including housing starts, building permits, and completions.
