NAHB analysis of the Census Construction Spending data shows that total private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $534.2 billion in June. It was down 1.5% in June, after a 3.6% decline in May and a 4.4% decrease in April, due to the economic consequences of the COVID-19 lockdowns. On a year-over-year basis, total private construction spending dipped 0.8%.
Nonresidential construction also dipped in June.
The monthly declines are largely attributed to the slowdown of spending on single-family and improvements. Spending on single-family construction declined 3.6% in June to a seasonally adjusted annual rate of $252.6 billion, after a decrease of 7.7% in May. Private residential improvements, which include spending on remodeling, major replacements, and additions to owner-occupied housing units, dipped 0.4% to a $201.5 billion annual pace in June. Multifamily construction spending rose 3.0% in June, after a slight increase of 0.4% in May, due to prior strength of multifamily starts which is now resulting in properties put into service.
See more at NAHB’s Eye on Housing blog.