Single-Family and Multifamily Spending Up, Remodeling Declines Again

Total private residential construction spending decreased a negligible 0.1% on a month-over-month basis during April 2013, with the net decline driven by a further decrease in improvement spending. However, total housing-related spending is up 18.8% from April 2012 and has increased 35.7%  from the cycle low point in 2009.

Spending on new single-family housing has now increased for 22 of the last 23 months, increasing 1.4% over March. On a year-over-year basis new single-family expenditures have grown 38.6% and are up 81.9% from the cycle low pace set in mid-2009.

  constr spending_June

New multifamily construction spending registered a 3.4% gain in April and has increased 48.6% measured year-over-year.  Multifamily construction is up 123% from the cycle low recorded in mid-2010.

While single-family and multifamily construction continue to improve, home improvement spending has been and remains a source of weakness for the residential construction sector. Remodeling-related expenditures have declined significantly over the course of 2013. Improvement spending was down 3.3% in April and is down 7% from April 2012. Rising existing home sales point to increases later in the year.



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0 replies

  1. Not sure why remodeling is down. Maybe its because there are less distressed properties on the market so flipping is more difficult, and thus remodeling is down.

    • One possible explanation for the slight slowdown is that the boost given from the 25C tax credit for energy efficient upgrades has run its course.

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