Which market indicator reflects the number of new homes being constructed in a region?

The indicator that reflects the number of new homes being constructed in a region is new building permits. When builders and developers apply for building permits, they inform local authorities of their intent to construct new homes. This process is crucial because it provides insight into the future supply of housing, as these permits are often a precursor to actual construction. An increase in building permits typically suggests that economic conditions are favorable for construction, while a decrease may indicate a slowdown in development.

The other options, while related to real estate and the housing market, do not specifically measure new home construction. For instance, construction costs relate to the expenses incurred during building projects but do not indicate the volume of new construction. Market value assessments estimate the value of properties based on various factors but do not provide direct information about the number of new constructions. Mortgage approval rates inform about the lending environment and the accessibility of loans for buyers but do not directly correlate to how many new homes are being built. Thus, new building permits serve as the most direct market indicator for tracking new home construction in a region.