Good news! Private residential construction spending increased by 2.2% in February (compared to January). It’s not a big gain, but according to Eye on Housing, residential construction activity is more than 20% above its year-ago level and about 36% higher than the cyclical low in mid-2011.
February 2013 Residential Construction Spending Highlights
Single-family Homes
- February spending increased by 4.3% over the previous month
- Compared to February 2012, spending on new single-family homes rose 34%
- Nominal construction spending grew by more than 73% since hitting rock bottom in mid-2009
- Spending activity will likely expand further over the next two years
- NAHB forecasts single-family housing starts to increase 23% and 29%, respectively, this year and next
Multi-family Housing
- Spending on new multifamily projects decreased by 2.2% from January
- New multifamily construction spending is 52% ahead of the pace in February 2012
- Spending more than doubled the August 2010 low point
- Baseline forecast: consistent gains in multi-family starts through the end of 2014
Home improvement spending
- February spending increased by only 0.5% compared to January
- 1.1% growth from last year
- 3-month moving average indicates spending on remodeling activity has cooled over the past several months
- Home improvement activity is expected to see steady growth going forward
