NAHB analysis of Census Construction Spending data shows that total private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $515.4 billion in September, virtually unchanged from downwardly revised August estimates. The total private residential construction spending was 9.6% higher than a year ago.
The monthly gains are largely attributed to the steady growth of spending on single-family and multifamily construction. Single-family construction spending inched up 0.2%, while multifamily spending rebounded by 0.6% in September. Spending on improvements slipped to $427.3 billion in September, down by 0.5% over last months. However, home improvement spending was still 9.6% higher since a year ago.
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 0.5% to a seasonally adjusted annual rate of $427 billion. However, it was 3.8% lower than a year ago. The largest contribution to this month-over-month nonresidential spending increase was made by the class of educational ($1.1 billion), followed by health care ($0.6 billion), and lodging ($0.2 billion). (Thanks to Ken Simonson, Chief Economist ACG, for the suggestion.)