Private Residential Construction Spending Up 2.8% in Sept.

Originally published by: LBM JournalNovember 2, 2020

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A row of homes under construction

NAHB analysis of Census Construction Spending data shows that total private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $610.9 billion in September. It was up 2.8% over the August estimates, marking the fourth consecutive month of growth. Total private residential construction spending was 9.9% higher than a year ago.

The monthly gain is largely attributed to the steady growth of spending on single family and multifamily construction. It is in line with the strong readings of single family starts in September and historic climbing of builder confidence. Spending on single-family construction rose 5.7% to a $305.8 billion annual pace, supported by the increasing demand amid the record low mortgage rates.

National nonresidential construction spending fell 1.6% in September, according to an Associated Builders and Contractors analysis. On a seasonally adjusted annualized basis, monthly spending totaled $794.3 billion.

Among the sixteen nonresidential subcategories, thirteen were down on a monthly basis.  Private nonresidential spending declined 1.5% in September, while public nonresidential construction spending was down 1.7%, ABC reported.