NAHB analysis of Census Construction Spending data shows that total private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $502.9 billion in June, 0.2% lower than downwardly revised May estimates. It was the third consecutive monthly decrease after a strong start this year. Nevertheless, the total private residential construction spending was 9.2% higher than a year ago.
The monthly declines are largely attributed to the slowdown of multifamily construction spending. It slipped 2.9% after a decrease of 3.1% in May, but was 0.6% higher since a year ago. Spending on single-family inched up 0.3% this month, resuming its steady growth after a decline last month. Spending on improvements was unchanged for the month, but was 12.8% higher since June 2016.
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 and a more modest growth in single-family construction and home improvement spending.
Private nonresidential construction spending increased 0.1% on a monthly basis. It was 1.1% higher than a year ago. The largest contribution to this year-over-year nonresidential spending gain was made by the class of commercial (13.8 %), followed by office (12.6% increase), and communication (5.1% increase).