US Private Residential Construction Spending: June 2016

US Private Residential Construction Spending: June 2016

The National Association of Home Builders analysis of Census Construction Spending data released Monday shows that total private residential construction spending for June registered a seasonally adjusted rate of US$445.8 billion, virtually unchanged from the May downwardly revised estimate. Private nonresidential construction spending fell for a third consecutive month in June, down by 1.3 per cent.

Within private residential construction, spending on single-family and multifamily both declined in June. Single-family spending dropped to US$239.6 billion in June, down 0.3 per cent over the upwardly revised May estimate.

US Residential Construction Spending

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The NAHB construction spending index, which is shown in the graph below (the base is January 2000), illustrates the strong growth in new multifamily construction since 2010, while new single-family construction and home improvements spending have drifted upward at a more modest pace. NAHB anticipates growth for new single-family spending over the course of 2016, consistent with the modest rise in single-family starts for the year.

Multifamily spending decreased to US$59.7 billion, down by 1.5 per cent since May. On an annual basis, however, single-family spending was 4.8 per cent higher. Multifamily spending also increased by 16.4 per cent since June 2015. Private construction spending on home improvements rose to a seasonally adjusted annual rate of US$146.5 billion in June, up by 1.2 per cent since last month.

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