Single-Family Construction Spending Continues to Rise
The NAHB’s analysis of Census data states that private residential construction spending increased by 0.2% in January 2024, marking the second consecutive month of gains. The spending reached a seasonally adjusted annual rate of $900.8 billion.
According to the NAHB, the monthly increase in total construction spending is attributed to more single-family construction. Spending on single-family construction rose 0.6% in December. This is the ninth consecutive monthly increase since April 2023. It is aligned with the strong reading of 1.33 million single-family starts in January, as the lack of existing home inventory is boosting new construction. Compared to a year ago, spending on single-family construction is 12.5% higher. Multifamily construction spending went down 0.4% in January after an increase of 0.4% in December, as a large stock of multifamily housing is under construction. Private residential improvement spending inched down 0.1% in January and was 3.7% lower compared to a year ago.
