Total private residential construction spending increased to a seasonally adjusted annual rate of $328.6 billion in May 2013, the fastest pace of residential construction since October 2008. The reading is 1.2 percent above the positively revised April estimate and 22 percent higher since a year ago.
All three components of residential construction spending registered gains. New multifamily construction spending showed the largest increases, rising 2.5 percent since April and 51.7 percent since May 2012. It is now at a seasonally adjusted annual rate of 31.8 billion.
Spending on new single-family homes increased to an annual rate of $166.3 billion, the rate unseen since August 2008. On a year-over-year basis, new single-family construction spending increased 33.2 percent.
Finally breaking the decline that started in January 2013, home improvement spending also registered gains. Remodeling spending increased to an annual rate of $124.2 billion, 1.9 percent above the April reading, 7 percent above the year ago, but still below the spending rate registered during the first quarter of 2012.
Eye on Housing 
GREAT news for the industry, and for home improvement contractors like me. Excellent article, as usual. – Richard J. D’Angelo at CraftPro Home Improvements (www.craftprocontracting.com)
[…] Construction IncreasesAccording to an article from the National Association of Home Builders (NAHB), residential construction has increased at the fastest pace since October of 2008: “Total […]
This is great news, we’ve definitely seen an increase in home improvement spending in Iowa this year. Hope it continues the remainder of the year!
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Do you think that this means that they have more money to spend or if they are making more debt?
Yahoo released an article “Even Realtors Say Home Prices are Unsustainable”: http://yhoo.it/19lGulo.
If by “they” you mean homeowners, it may very well mean more debt. But residential construction wouldn’t be increasing unless there was a demand for it, and historically low mortgage rates be the reason. Yahoo also wrote this article: http://homes.yahoo.com/news/is-2013-the-right-time-to-buy-a-house–231039614.html
So, to answer your question: I don’t know for sure. I’m not economist, just a painting, drywall and carpentry contractor (www.craftprocontracting.com).
Constructions spending is great! This is what a healthy economy needs. And housing prices continue to climb which is nice too 🙂
It’s great to see an upward trend at last. I think a lot of people who may previously have been considering a house move are also looking at major home improvements e.g. extra room. This cuts down on cost and stress of moving and will also add value to the home in the long term.
Reblogged this on Mercer Island Pulse and commented:
New construction and home renovation spending jumps after six years of decline.
It always helps the economy and indicators/ articles like this help with the overall attitude. When folks read these stats they feel better and join in with remodeling and spending as well.
We’re also seeing an increase in the interior design community of people wanted to redesign/redecorate their existing homes. Good news for us and the building industry.
[…] Total private residential construction spending increased to a seasonally adjusted annual rate of $3…2013, the fastest pace of residential construction since October 2008. The reading is 1.2% above the positively revised April estimate and 22% higher over a year ago. […]
[…] Total private residential construction spending increased to a seasonally adjusted annual rate of $3…2013, the fastest pace of residential construction since October 2008. The reading is 1.2% above the positively revised April estimate and 22% higher over a year ago. […]
[…] Total private residential construction spending increased to a seasonally adjusted annual rate of $3…2013, the fastest pace of residential construction since October 2008. The reading is 1.2% above the positively revised April estimate and 22% higher over a year ago. […]
After reading your post, it is clear that most of the people want to remodel their old home and give them a perfect look. This thing is also very important because it increase property value also. Many home remodeling contractors provide their services to their clients.
Very interesting post. People are spending more on renovation and remodeling, which increases property value. Great for the economy.
[…] Total private residential construction spending increased to a seasonally adjusted annual rate of $3…2013, the fastest pace of residential construction since October 2008. The reading is 1.2% above the positively revised April estimate and 22% higher over a year ago. […]
[…] Total private residential construction spending increased to a seasonally adjusted annual rate of $3…, the fastest pace of residential construction since October 2008. The reading is 1.2% above the positively revised April estimate and 22% higher over a year ago. […]
[…] Total private residential construction spending increased to a seasonally adjusted annual rate of $3…2013, the fastest pace of residential construction since October 2008. The reading is 1.2% above the positively revised April estimate and 22% higher over a year ago. […]
Hello. Where can I find the source data for home improvement spending over the past couple decades? Thanks.
Census construction spending – the following link will take you back 10 years:
http://www.census.gov/construction/c30/prpdf.html
Improvement spending is the residual of subtracting out single-family and multifamily spending from total private residential construction spending.
[…] 6.5 percent, the National Association of Home Builders reports that home improvement spending is up 7 percent over the previous year and the median age of the American home is around 36 years. If you haven’t […]