Private Residential Construction Spending Slows in April
NAHB analysis of Census Construction Spending data shows that total private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $522.2 billion in April, 0.7% lower than upwardly revised March estimates. The private residential construction spending slowed down after a strong start of this year. However, it was still 16.7% higher than a year ago.
The monthly declines are largely attributed to the slowdown of private construction spending on both multifamily and home improvements. Multifamily construction spending fell 0.2% over the revised February estimates, but was 10.1% higher since a year ago. Spending on home improvements halted its increasing pace in April. On a year-over-year basis, home improvement spending rose by 32.3%. Single-family construction spending increased by 0.8%, continuing its steady growth since October 2016.
Private nonresidential construction spending slipped 0.6% on a monthly basis, however, it was 4.3% higher than a year ago. The largest contribution to this year-over-year nonresidential spending gain was made by the class of office (14.8%), followed by commercial (13.5% increase), and communication (11.8% increase).