Single-Family, Multifamily, Home Improvement Spending All Up

Total private residential construction spending increased to a seasonally adjusted annual rate of $328.6 billion in May 2013, the fastest pace of residential construction since October 2008. The reading is 1.2 percent above the positively revised April estimate and 22 percent higher since a year ago.

All three components of residential construction spending registered gains. New multifamily construction spending showed the largest increases, rising 2.5 percent since April and 51.7 percent since May 2012. It is now at a seasonally adjusted annual rate of 31.8 billion.

Res_spen_May2013

Spending on new single-family homes increased to an annual rate of $166.3 billion, the rate unseen since August 2008. On a year-over-year basis, new single-family construction spending increased 33.2 percent.

Finally breaking the decline that started in January 2013, home improvement spending also registered gains. Remodeling spending increased to an annual rate of $124.2 billion, 1.9 percent above the April reading, 7 percent above the year ago, but still below the spending rate registered during the first quarter of 2012.



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23 replies

  1. GREAT news for the industry, and for home improvement contractors like me. Excellent article, as usual. – Richard J. D’Angelo at CraftPro Home Improvements (www.craftprocontracting.com)

  2. This is great news, we’ve definitely seen an increase in home improvement spending in Iowa this year. Hope it continues the remainder of the year!

  3. Do you think that this means that they have more money to spend or if they are making more debt?

  4. Constructions spending is great! This is what a healthy economy needs. And housing prices continue to climb which is nice too 🙂

  5. It’s great to see an upward trend at last. I think a lot of people who may previously have been considering a house move are also looking at major home improvements e.g. extra room. This cuts down on cost and stress of moving and will also add value to the home in the long term.

  6. Reblogged this on Mercer Island Pulse and commented:
    New construction and home renovation spending jumps after six years of decline.

  7. It always helps the economy and indicators/ articles like this help with the overall attitude. When folks read these stats they feel better and join in with remodeling and spending as well.

  8. We’re also seeing an increase in the interior design community of people wanted to redesign/redecorate their existing homes. Good news for us and the building industry.

  9. After reading your post, it is clear that most of the people want to remodel their old home and give them a perfect look. This thing is also very important because it increase property value also. Many home remodeling contractors provide their services to their clients.

  10. Very interesting post. People are spending more on renovation and remodeling, which increases property value. Great for the economy.

  11. Hello. Where can I find the source data for home improvement spending over the past couple decades? Thanks.

  12. It’s a good thing people are beginning to remodel their homes. This will increase property values and small businesses/contractors will once again have work. PROHome1 (https://youtu.be/5t9jThPN1Po)

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