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 multi– family 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
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 season– ally adjusted annual rate of US$146.5 billion in June, up by 1.2 per cent since last month.