NAHB analysis of Census Construction Spending data shows that total private residential construction spending for June increased to a seasonally adjusted annual rate of $378 billion. On a month-over-month basis, private multifamily spending increased to $52 billion, up by 2.82 percent over the revised May estimate, while private single-family spending was $211 billion, a slight decline of 0.27 percent after two months of consecutive gains.
Annually, multifamily spending rose 23.7 percent from the revised 2014 estimate and spending on single-family construction was 12.8 percent higher than June 2014.
The NAHB-constructed spending index, which is shown in the graph below (the base is January 2000), indicates that recent gains have been driven by the steady increase in multifamily construction spending. The pace of the multifamily spending, however, is gradually slowing. NAHB anticipates growing increases in single-family spending in 2015.
The pace of total nonresidential construction spending decreased by 0.03 percent monthly in June, but increased by 11.5 percent annually from June 2014. The largest contribution to this year-over-year nonresidential spending gain was made by the class of manufacturing-related construction (62 percent increase), followed by amusement/recreation (48.2 percent increase) and lodging (41.9 percent increase).
This original post was published on NAHB’s blog, Eye on Housing.