According to a recent article at Eye On Housing, analysis of Census Construction Spending data by the National Association of Home Builders (NAHB) showed that private residential construction spending rose 0.5% to in July to an annual rate of $773.0 billion. Total private residential spending was 27% higher than the year prior.
“The monthly gains are attributed to the strong growth of spending on single-family construction and improvements,” wrote Na Zhao in the article. “Single-family construction spending rose to a $416.3 billion annual pace in July, up by 0.9% over the upward revised June estimates. It increased by 47.1% on a year-over-year basis. Spending on improvements edged up 0.2% in July, after a 0.7% dip in June. Multifamily construction spending stayed flat in July but was 14.9% higher than a year ago.”
Diving a little deeper, the NAHB construction spending index also told a story of a healthy amount of growth in single-family construction from the second half of 2019 to February 2020. Additionally, new multifamily construction spending has also seen a slight increase after a minor setback in the latter half of 2019.