Private Residential Construction Spending Slips in February

Further analysis of the U.S. Census Bureau’s Construction Spending data provided by the National Association of Home Builders (NAHB) reveals that total private residential construction spending dropped -0.2% in February 2021 to a seasonally adjust annual rate (SAAR) of $718 billion, down slightly from January’s record high level. Year-over-year, however, private residential construction is up 21%. The February decrease can be directly correlated to a -1.4% decline in spending in multifamily construction and improvements. However, year-over-year multifamily construction is 14.6% higher. Single-family construction spending inched 0.1% higher to a $376.8 billion annual pace in February. Remodeling spending, which includes spending on remodeling, major replacements, and additions to owner-occupied housing units, slid -0.2% to a $248.0 billion annual pace in February.