Both strong spending on single-family construction and home improvements helped to increase total private residential construction spending in November, says the National Association of Home Builders. In November, total spending increased 2.7% to a seasonally adjusted annual rate of $658.1 billion, according to NAHB’s analysis of Census Construction Spending data. Compared to November 2019, that’s a 16.1% increase. More specifically, single-family construction spending jumped 5.1% in November and remodeling spending saw lesser growth with a 0.2% increase. Increased spending reflects strong builder confidence and readings of single-family housing starts, says NAHB.
Meanwhile, multifamily construction spending stayed flat after reaching a record high in October, and was 15.8% higher since a year ago.
The NAHB construction spending index, which is shown in the graph below (the base is January 2000), 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, and the quick rebounds since July 2020. New multifamily construction spending has picked up the pace after a slowdown from the second half of 2019.
Advertisement
Related Stories
Construction
5 Steps to Cracking the Code for a High-Performance Home
As a model of energy savings, water conservation, indoor comfort and health, and use of on-site renewable energy, The New American Home 2024 offers valuable lessons
Construction
Proven Ways to Improve Jobsite Productivity
Consider these solutions for reducing cycle time, hard costs, dry runs, rework, miscommunication, and overall inefficiencies on the jobsite
Single-Family Homes
What Does It Cost to Build a Single-Family Home?
A closer look at the itemized costs in each stage of construction for a single-family home