Housing Starts
Housing Starts — are the number of registered units which will be constructed. The start happens when the foundation of the building begins. The number of housing starts is an important indicator of economic stability. It shows the confidence in the future and the amount of free money held by the citizens.
The process of construction started when the excavation for the footing began. The housing starts are registered after the construction of the new building. For example, the construction of a 20-unit apartment block is counted as 20 housing starts.
Types of Housing Starts
There are several typical types of housing starts. They are distinguished by the number of floors and apartments. Some of them suit families with children, others suit single people.
Variants of Housing Starts:
Single-family detached home — a detached house or the house where only one family dwells. This type of house is common in rural and suburban areas. There are various types of single-family detached homes: cottage (small house with garden in a rural area), bungalow (medium-sized house surrounded by verandas), villa (freestanding large house in the suburban area), and mansion (large house with living rooms including specialty rooms like libraries and study room).
Townhouse — a terraced house situated in the city. It has some distinctive architectural characteristics. The townhouses are multi-level with a rear yard. Usually, they are constructed in rows. The common area may include the sports area or pool.
Apartment building — a building with numerous living units. These buildings are different in various countries. They may have different numbers of floors: from duplexes and triplexes to skyscrapers. There are different types of apartments: studio apartment, micro-apartment, garden apartment, basement apartment, salon apartment, maisonette, loft apartment, communal apartment, penthouse, and serviced apartment.
Stages of Housing Starts
The construction of the housing starts has important milestones. They have to be strictly followed. The process of construction starts when the foundation is excavated.
Milestones of Housing Starts:
Permitted. At this stage, the building company contacts the government authorities responsible for the house building. The company shows the construction plan and tries to receive the necessary documents to start the process. Authorities study the submitted documents and decide on them. If the documents have drawbacks, the authorities refuse to provide the permission for building. The company should correct the documentation and, then, submit it again. If the documentation meets the requirements, the authorities approve the construction.
Authorized but not started. At this stage, the building company searches for the contractors that will help to carry out the specific types of work. It can be the work at height, wiring, fit-out work, vitrification, or planting of greenery.
Started. At this stage, the building company starts the work. But firstly it is necessary to clean up the building plot. The company's workers need to remove the trash, broken trees, or stones. Also, it is necessary to remember that the building process shouldn’t harm the environment or other people.
Under construction. This stage includes all the milestones of the building process. The construction of the house may be quite long. The terms of work are indicated, and it is necessary to follow the schedule. Bad weather or a difficult economic situation may hinder work. If the house is built for too long, it becomes a long-delayed construction. Often it happens when legal problems are exposed after the beginning of work.
Completed. This is the final stage of the building process. The work is finished, and the future dwellers can buy a house or an apartment. The commercial structures also can lend the areas for offices and shops.
Economic Meaning of Housing Starts
The number of housing starts is an essential indicator to monitor well-being and investment attractiveness. If the population is rich, they have enough money to rent or buy apartments. Usually, they acquire an apartment as a home for the family, as a future house for the adult children, or as a landing area for additional income.
The same process happens with commercial real estate. If the economy is stable, and it is safe to open a business. As every business needs accommodation, the building companies see the growing demand and try to satisfy it. They build office centers and malls for the shops.
If the economy is in recession and the population doesn’t have enough money to spend, the construction industry suffers losses. There are no buyers for the apartments or the retail spaces. The projects are scrapped or declined. The unfinished buildings decay and become dilapidated.
To avoid the decay of the building the municipality can buy them out and use them for social needs. For example, the flats can be transferred to apartment dwellers within the framework of the resettlement program from dilapidated housing.
