Private residential construction spending in June puts the sector at its highest point since early 2009, according to monthly Census Bureau data released earlier this week. The $265.6 billion adjusted annual rate is up 1.3 percent from May and 12.1 percent from a year ago. Of that number, single-family checked in at a rate of $125.9 billion in June, up 3 percent from May and 18.6 from a year ago, while multifamily continues to post growth. In that sector, the $21.7 billion annual adjusted June rate is 3.4 percent higher than May’s report and nearly double that from a year ago.
Overall construction spending improved slightly in June to nudge the annual spending rate to $842.1 billion from May’s $838.3 billion. At $387.1 billion, year-to-date overall spending is up 9 percent from the same period a year ago.
“With both starts and permitting activity for new single-family homes still on the rise, additional gains in spending are expected over the very near term and should carry forward as the forecast calls for the pace of home building activity to gain momentum as the calendar transitions to 2013,” the NAHB reports.