The total private residential construction spending is 21% higher than reported a year ago. The National Association of Home Builders (NAHB) analysis of Census Construction Spending data reported a 2.5% rise in total private residential construction spending in January. January saw a seasonally adjusted annual rate of $713 billion making this a record high.
The pandemic has caused many of us to spend more time at home. The gains were stemmed from ” strong growth of spending on single-family and improvements.” In January, the data shows that single-family construction hit a $376.2 billion annual pace which was up by 3%. There was also a 2.3% increase in spending on remodeling, major replacements and additions.
Although the majority of the surge in spending was in homebuilding, there was also a rise in public and private non-housing-related construction.