Total private residential spending – single-family, multifamily, and home improvements – in the US fell slightly in August, by 0.1 per cent, to a seasonally adjusted annual rate of US$351.7 billion. The latest Census estimate shows gains in the single and multifamily components of private residential construction spending offset by a decline in home improvements.
Single-family spending increased 0.7 per cent and multifamily spending increased 1.4 per cent over the revised July estimates. Home improvements spending fell 2 per cent over the revised July estimate.
On a 3-month moving average basis, from August 2013, single-family construction spending increased 9.1% and multifamily construction spending increased 39.2 per cent. Over the same period private construction spending on home improvements decreased 8 per cent.
US Construction Spending
As well, the home-price index covering the US increased 5.6 per cent in the 12 months ended in July, said the S&P/Case-Shiller Home Price Index report. That is down from 6.3 per cent in June. US home prices were rising at double-digit yearly rates as recently as February 2014.
The home-price index covering 10 major US cities increased just 6.7 per cent in the year ended in July.