The National Association of Home Builders has analyzed Census construction spending data and found that total private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $546.6 billion in July. It was up 2% this month after four consecutive monthly decreases, NAHB said. Total private residential construction spending was 0.5% 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 in line with the positive readings of single family and multifamily housing starts in July. Spending on single-family construction rose 3.1% to a $268.0 billion annual pace, supported by the increasing demand amid the record low mortgage rates. Multifamily construction spending rose 4.9% to an $85.8 billion annual pace, reaching a record high. Private residential improvements, which include spending on remodeling, major replacements, and additions to owner-occupied housing units, dipped 0.5% to a $92.8 billion annual pace in July. Nonresidential spending fell in July.
See more at NAHB’s Eye on Housing blog.