Private Residential Construction Spending Takes a Dip
According to Census Construction Spending data, private residential construction spending fell by 0.3% in June, following a 0.7% decline in the previous month. However, it was still 7.3% higher than a year earlier, based on analysis from the National Association of Home Builders.
According to LBM, the monthly decline in total private construction spending for June was largely due to reduced spending on single-family construction. Spending on single-family construction fell by 1.2% in June, following a dip of 0.6% in May. This marks the third consecutive monthly decrease. Elevated mortgage interest rates have cooled the housing market, dampening home builder confidence and new home starts. Despite this, spending on single-family construction was still 9.9% higher than it was a year earlier.Multifamily construction spending inched up 0.1% in June after a dip of 0.6% in May. Year-over-year, spending on multifamily construction declined 7.4%, as an elevated level of apartments under construction is being completed. Private residential improvement spending increased 0.6% in June and was 10.4% higher compared to a year ago.
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