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January 4, 2012 (Shirley Allen)
Private residential construction spending continued to show strength in November, increasing 2.0 percent to a seasonally adjusted annual rate of $243.7 billion, up from a revised estimate of $238.9 billion in October according to the U.S. Census Bureau. It was the third consecutive month of improvement for residential builders.
Total monthly spending by builders for both residential and non-residential private construction increased 1.0 percent to a seasonally adjusted annual rate of $522.3 billion, up from the revised estimate of $517.3 billion in October.
The estimate for private residential construction spending in October was revised downward almost $100 million and the estimate for all private construction was also revised downward $1.3 billion.
Builders spent 3.4 percent more on private residential construction in November than they did the same month a year ago when $235.7 billion was spent, while the total amount builders spent for all private construction was 4.0 percent higher than the $502.3 billion spent in November of last year.
Construction spending of new private single-family homes increased 1.5 percent from October to November with builders spending a seasonally adjusted $109.0 billion in November. The estimate for October was revised downward from $107.5 billion to $107.4 billion.
Single-family home construction spending was 2.5 percent higher than in November of 2010, when builders spent $106.4 billion on building new single-family homes.
Multi-family private construction spending was 1.3 percent higher in November than in October, climbing to a seasonally adjusted annual rate of $15.4 billion. The estimate for October was revised upward from $14.9 billion to $15.2 billion.
Multi-family construction spending was 4.1 percent higher than in November of last year, when builders spent a seasonally adjusted $14.8 billion on multi-family dwellings.
The remainder of the private residential construction spending in November, $119.2 billion, was money spent for any type of construction to an existing structure ranging from remodeling to additions to swimming pools to replacement of major systems such as HVAC systems. This was an increase from a downwardly revised $116.2 billion in October and up from the $114.5 billion spent in November of 2010.
Tags: residential construction spending, single-family homes, multi-family dwellings, seasonally adjusted annual rate, remodeling, additions