Further analysis of the U.S. Census Bureau’s Construction Spending data for June, provided by the National Association of Home Builders (NAHB), show that total private residential construction spending rose 1.1% in June to a seasonally adjusted annual rate (SAAR) of $763.4 billion. Total private residential construction spending was 29.3% higher than a year ago. The NAHB credits the monthly gains to the strong growth in spending on single-family construction and improvements. Single-family construction spending rose to a $411.8 billion annual pace in June, up by 1% over the May estimates. It increased by 51.9% on a year-over-year basis. This is line with the steady readings of single-family housing starts. Spending on improvements edged up 0.4% in June, after a -0.6% dip in May. Multifamily construction spending slipped -0.1% to a $99.1 billion annual pace in June but was 19.7% higher than a year ago. After a slowdown in the second half of 2019, new multifamily construction spending has picked up the pace and continues even today.
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June Gains for Private Residential Spending