July Saw a 2% Increase in Private Residential Construction Spending

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Covered patio that looks out onto the spacious fenced-in backyard. This patio is complete with a ceiling fan and custom lighting.According to the National Association of Home Builders analysis of Census Construction Spending, private residential construction was up 2% in July. The total private residential construction spending came in at a seasonally adjusted annual rate (SAAR) of $546.6 billion.

The housing market is booming and there is a steady growth of single-family and multifamily construction. The single-family and multifamily starts in July rose as well. Single-family construction spending rose 3.1% to a $268 billion pace while multifamily construction spending rose 4.9% to an $85.5 billion annual pace. A catalyst for this increase was the record low mortgage rates.

NAHB’s construction spending index illustrates the solid growth in single-family construction and home improvement from the second half of 2019 to February 2020, before the COVID-19 hit the U.S. economy.

 

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