Multifamily construction spending on the rise
Multifamily construction spending hit a new record high of $65.2 billion in December, according to the National Association of Home Builders (NAHB).
The NAHB said that its analysis of Census Construction Spending showed that total private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $536.7 billion in December. This is down 1.4% after a 3.4% increase in November.
Total private residential construction spending fell 1.3% in 2018, the first annual decline since 2011.
But multifamily construction increased 3.1% to a $62.2 billion annual pace despite industry predictions that the market will level off of slump.
The monthly decline is largely due to the drop of spending on single-family construction and remodeling, the NAHB said.
Single-family spending fell 3.2% in December and was 5.0% lower compared to a year ago. Spending on home improvements slipped by 0.4% in December but rose by 1.9% over December 2017.
Private nonresidential construction spending edged up 0.4% to a rate of $454.5 billion and was 3.4% higher than a year ago.
The largest contribution to this year-over-year nonresidential spending increase was made by the class of power facilities ($7.3 billion increase), followed by office ($4.6 billion increase) and manufacturing ($3.6 billion increase), the NAHB reported.
The NAHB said that its analysis of Census Construction Spending showed that total private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $536.7 billion in December. This is down 1.4% after a 3.4% increase in November.
Total private residential construction spending fell 1.3% in 2018, the first annual decline since 2011.
But multifamily construction increased 3.1% to a $62.2 billion annual pace despite industry predictions that the market will level off of slump.
The monthly decline is largely due to the drop of spending on single-family construction and remodeling, the NAHB said.
Single-family spending fell 3.2% in December and was 5.0% lower compared to a year ago. Spending on home improvements slipped by 0.4% in December but rose by 1.9% over December 2017.
Private nonresidential construction spending edged up 0.4% to a rate of $454.5 billion and was 3.4% higher than a year ago.
The largest contribution to this year-over-year nonresidential spending increase was made by the class of power facilities ($7.3 billion increase), followed by office ($4.6 billion increase) and manufacturing ($3.6 billion increase), the NAHB reported.