Residential Building Continues to Dominate Construction Spending
In March, residential construction spending increased by double digits, pushing total construction spending ahead of its 2021 pace. According to the US Census Bureau, total construction investment increased by 0.1 percent in March to $1.731 trillion, up 11.7 percent yearly. In the first three months of 2022, $376.337 billion has been spent, representing a 12.0% increase over the same period last year.
From February to March, private sector spending grew 0.2 percent to $1.380 trillion on an annual basis. The residential portion of that spending increased by 1.0 percent in March, compared to 0.7 percent in February. The yearly rate was $88.045 billion, rising 18.4 percent from March 2021. Although the non-residential component declined 1.2 percent from the previous month, it is still 8.5 percent higher than in March 2021.
According to Na Zhao of the National Association of Home Builders (NAHB), new single-family construction accounted for $472.6 billion in monthly residential investment, up 1.3 percent from February and 18.5 percent year over year, while multifamily spending fell 0.5 percent. Home improvement spending increased 1.1 percent for the month.
