The most recent data, released Tuesday, from Construction Spending showed that spending on US residential improvements fell to a seasonally adjusted annual rate of US$173 billion in March 2019, -14.1% lower than a year ago. RA very important segment to sawmills and lumber manufacturers, residential Improvement Spending in the US has experienced weakness after reaching the peak of US$216.7 billion in April 2018. The recent downward trend in improvements spending mirrors the recent softness of NAHB’s Remodelers’ Market Index.
Private residential improvements, as defined by the Census Bureau in its series on Construction Spending, include spending on remodeling, major replacements, and additions to owner-occupied housing units. Maintenance and repair are thus excluded, as is any spending on rental and vacant properties.
US Spending on Residential Improvements: Feb 2019
Residential improvements spending experienced a robust growth in 2013-2018. It increased to US$216.7 billion, hitting the new record high in April 2018, from around US$116.0 billion in July 2013. The average annual change of improvements spending during this period was around 13%.