Further analysis of the U.S. Census Bureau’s Construction Spending data for April, provided by the National Association of Home Builders, reports that total private residential construction spending rose 1.0% in April to a seasonally adjusted annual rate of $729.2 billion. Total private residential construction spending was 29.7% higher than a year ago. The NAHB attributes most of the monthly gains to the strong growth of spending on multifamily and single-family construction. Multifamily construction spending rose 1.9% in April, continuing the upward trend since May 2020. Single-family construction spending was up 1.3% to a 396.3 billion annual pace in April. Housing demand remains strong, despite various building headwinds. Remodeling spending inched up by 0.3% in April, after an increase of 3.6% in March. The NAHB construction spending index shows 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. On the other hand, private nonresidential construction spending decreased 0.5% to a seasonally adjusted annual rate of $451.4 billion. It was 4.8% lower than a year ago.
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Private Residential Spending Rises Modestly in April