NAHB analysis of Census Construction Spending data shows that total private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $637.1 billion in August. It was up 2.9% over the upwardly revised September estimates. Total private residential construction spending was 14.5% higher than a year ago.
The monthly gain is largely attributed to the steady growth of spending on single family and multifamily construction. It is consistent with the best pace of single family starts in October and surging builder confidence. Spending on single-family construction rose 5.6% to a $324.0 billion annual pace, supported by the increasing buyer traffic amid the record low mortgage rates. Multifamily construction spending inched up 1.2% to a $90.2 billion annual pace, reaching a record high in October. Private residential improvements, which include spending on remodeling, major replacements, and additions to owner-occupied housing units, stayed flat at a $223.0 billion annual pace in November. See more at NAHB’s Eye on Housing blog.