Private residential construction saw a modest but meaningful rebound in February, with spending climbing 1.3% after a dip of 1.2% in January. This uptick was fueled largely by renewed strength in single-family homebuilding and a continued surge in residential improvements, signaling cautious optimism in a market still wrestling with elevated interest rates and broader economic uncertainties.

While the month-over-month numbers reflect a bounce back, the year-over-year increase in private residential construction spending was relatively modest at 1.6%. Even so, the growth suggests a degree of resilience within the sector, particularly in key areas of homeowner activity.

Single-family construction spending rose by 1% in February, continuing a gradual recovery after five straight months of decline from April through August 2024. That growth aligned with a strong showing in single-family housing starts for the month, indicating that builders are slowly gaining confidence despite tighter lending conditions and fluctuating input costs. Still, spending in this category remains just under where it was a year ago—down 0.1% compared to February 2024—highlighting the lingering impact of last year’s slowdown.

Meanwhile, residential improvement spending saw a more pronounced jump, increasing by 2% in February. Compared to the same time last year, spending on home renovations and upgrades was up an impressive 8.9%. This trend reflects a growing segment of homeowners choosing to invest in their current properties rather than enter the more expensive market for new homes—a choice likely influenced by higher mortgage rates and a limited resale inventory.

Multifamily construction, however, continued to lose steam. Spending in this category remained flat in February and has been in a downward trajectory since December 2023. Compared to the same period last year, multifamily construction spending was down 11.6%, a sharp contrast to the growth seen in other parts of the residential sector. The slowdown comes amid mounting concerns over overbuilding in some markets and the challenges of securing financing for larger projects.

A closer look at construction trends across sectors also shows that private nonresidential construction held its own, with spending rising 2.5% over the past year. The lion’s share of that growth came from the manufacturing sector, which saw an increase of $10.5 billion, followed by significant gains in power-related construction, up by $6.4 billion.

The NAHB construction spending index helps visualize the broader narrative. Since early 2024, spending on single-family homes has decelerated under pressure from high interest rates and ongoing debates about building material tariffs. Multifamily activity peaked in mid-2023 and has since pulled back. In contrast, home improvement spending has picked up steam, gaining momentum through late 2023 and into early 2025.

Together, the data paints a picture of a residential construction market in flux—cautiously climbing after last year’s softness, with some segments clearly outperforming others. While challenges remain, particularly in the multifamily space, the sustained demand for single-family housing and the boom in home renovations could keep the sector moving forward, albeit at a measured pace.

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On a quiet December afternoon, a little boy named Garrett Scarboro reached up for a piece of bubblegum, his short attention span momentarily caught in the swirl of holiday shopping with his grandmother. The shopkeeper, 71-year-old Larry Smith, smiled knowingly as he offered the four-year-old a candy cane from a hidden bowl behind the counter. Garrett dashed off seconds later, but the moment—fleeting as it was—could have taken place at nearly any point in the last hundred years.

This timeless scene unfolded inside H.J. Smith and Sons General Store and Museum, a fixture on Columbia Street in downtown Covington since 1876. What started as a local general store has endured across nearly 150 years, serving as both a business and a living chronicle of St. Tammany Parish history. The store’s well-worn floorboards, antique cash register, and pinewood counters speak of another era, one that the Smith family has carefully preserved through generations.

Larry Smith, great-grandson of founder H.J. Smith, is one of several siblings who now run the store. In a poetic twist of fate, young Garrett is connected to the store by ancestry too—his fourth-great-grandfather was killed just outside the shop in a shootout many years ago, a fact his grandmother shared quietly as the child wandered off.

Though the store’s bones are steeped in tradition, it has also proven resilient and adaptive. H.J. Smith and Sons still stocks skunk hats and nails by the pound. You can get a key cut by Henry “Smoke” Smith out back or pick up cedar lumber from the adjacent yard. Yet alongside these nods to the past are modern additions like air-conditioning and synthetic fleece folded beside cotton goods. A visit here is like watching time blend together—kerosene lanterns traded for fluorescent bulbs, but never at the expense of the store’s soul.

Larry calls it “the first Walmart,” a tongue-in-cheek reference to the store’s historic ability to carry whatever the community needed, whenever they needed it. From faucet washers to toy pistols, the Smiths have built a legacy on responsiveness and authenticity.

That spirit of service was seeded when H.J. Smith opened the store with his father, J.E. Smith, who had moved to Covington from Baltimore in the 1840s. At the time, the town’s commerce was driven by the timber and brick industries, and shipping routes on the Bogue Falaya and Tchefuncte Rivers linked Covington to the bustling markets of New Orleans. The general store’s strategic location along Columbia Street helped ensure its early success.

Even now, it’s the store’s flexible inventory—and the family behind it—that keeps loyal customers coming back. Robert Desadier, a horticulturist from Mandeville, has been shopping here for more than three decades. He comes for the hard-to-find items that modern big-box stores don’t carry and stays for the deep knowledge the Smiths offer. “Where else are you gonna get this?” he asks with a grin.

The Smith family itself is part of the appeal. Larry works side-by-side with brothers Smoke and Kevin. Their sister Wanda manages the books. The oldest brother, Jack, technically retired, still shows up regularly—usually with a story, sometimes with a bruise, always with good humor. Their banter echoes across the store like a soundtrack of continuity. When Jack arrived one day post-surgery, Kevin quipped, “Did they punch you or something?” Smoke burst into laughter. It’s this daily rhythm, full of teasing and camaraderie, that binds the family to each other and to the business they’ve built.

The store has even brushed up against Hollywood. In 2019, Kevin Costner filmed a scene from The Highwaymen right inside the store, giving Columbia Street a few minutes of silver screen glory. Larry gave him a tour afterward. “He spent a good bit of time here,” Larry said, “and he enjoyed history.”

That history is preserved in a backroom museum the family opened in the 1980s. Visitors can browse relics from Covington’s past, including a mummified rat accidentally discovered in a long-forgotten storage box—now a favorite among schoolchildren. There’s also a faded newspaper clipping from 1889 detailing a deadly confrontation between H.J. Smith and a man who owed him money for cottonseed. The article deemed it justifiable homicide, describing Smith as a man of “excellent reputation.”

Julian Smith, now 87, is the store’s oldest living descendant and a retired college professor. He remembers helping during World War II, selling corn and sugar to local farmers who turned it into moonshine. He chuckles now at the lessons learned from that particular brand of enterprise.

Seven generations of Smiths have now touched this place. Larry’s grandchildren stop by, and while there’s hope that one or more will one day carry on the tradition, there’s no pressure. “We’re hoping some of the grandkids get involved,” Larry says. “But I don’t want to push them. We’ll just have to wait and see.”

For now, the Smiths are content to keep doing what they’ve always done—serving their neighbors, preserving their past, and making sure that in a world of change, at least one corner of Covington still feels like home.

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Despite rising mortgage rates, more buyers are entering the real estate market, and it is putting steady pressure on home prices. For future homebuyers, this could mean even more financial hurdles ahead.

Between January and February of this year, existing home sales rose by 4.2 percent to a seasonally adjusted annual rate of 4.26 million units, according to the National Association of Realtors. At the same time, home prices are steadily climbing. The median price for an existing home hit $398,400 in February, marking a 3.8 percent increase compared to the previous year. According to Lawrence Yun, Chief Economist for NAR, buyers are cautiously stepping back into the market. Mortgage rates have not moved much, he said, but a modest increase in inventory and more choices are helping to release some of the pent-up housing demand.

The trends suggest that the financial pressure facing homebuyers is not going away anytime soon — and might even intensify.

So why are housing prices continuing to climb, even as rates stay high? A strong job market, low inventory, and persistent demand are combining to keep prices moving upward. Although mortgage rates now hover between 6 and 7 percent, buyers are motivated by concerns that prices and competition could escalate even further. They are acting now rather than risk being priced out later.

The February jobs report from the U.S. Bureau of Labor Statistics paints a resilient economic picture, showing a 151,000 job increase and a low unemployment rate of 4.1 percent, a figure that many economists consider healthy. At the same time, the housing market remains tight. Inventory levels rose slightly in February to 1.24 million unsold homes, but at the current pace of sales, that inventory represents only about a 3.5-month supply. Traditionally, a six-month supply signals a balanced market. The shortage keeps upward pressure on prices, forcing many buyers to either stretch their budgets or shift their expectations toward smaller or less updated properties.

Yun described the market conditions as still relatively tight, a sentiment echoed by buyers across the country trying to navigate slim pickings and stiff competition.

Interestingly, first-time homebuyers are making a bigger mark in today’s market. They accounted for 31 percent of all sales in February, up from 26 percent the year before. Meanwhile, investors have pulled back, making up just 16 percent of sales compared to 21 percent last year. This shift suggests that more primary homebuyers — not investors — are driving the market, which could be part of what is keeping prices firm despite the weight of higher borrowing costs.

For anyone considering buying a home, these trends mean adjustments might be necessary. Buyers may need to broaden their searches to include different neighborhoods, more modest homes, or even different regions where competition is less intense. Some buyers are turning to alternative loan products like adjustable-rate mortgages or interest-only loans to manage monthly payments. While these options can help ease costs in the short term, they come with risks that must be carefully understood.

Another strategy buyers are exploring is to purchase now and refinance later if interest rates drop. Refinancing could lower monthly payments or shorten the loan term, but it is important to factor in refinancing costs to ensure the potential savings make sense.

Timing might also play a critical role. Buyers who can wait for quieter seasons like fall or winter could find themselves with a better chance to negotiate on price, thanks to lower competition.

For current homeowners, the rising market offers an upside. As Yun points out, every one percent gain in home prices translates into roughly a $350 billion increase in housing equity nationwide. Sellers in this environment may find themselves with extra cash in their pockets, providing a financial boost that can be used for a new purchase, home improvements, or investment opportunities.

Whether you are a buyer trying to break into the market or a homeowner weighing your next move, the reality is clear. Today’s housing market demands flexibility, smart financial planning, and a willingness to think creatively about how — and when — to make your next big move.

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