Private Residential Construction Spending Down in June but Up YOY

Washington, D.C., August 2, 2024–Private residential construction spending was down 0.3% in June after a dip of 0.7% in the prior month, according to the Census Construction Spending data. 

“The monthly decline in total private construction spending for June was largely due to reduced spending on single-family construction,” reports the National Association of Home Builders (NAHB). “Spending on single-family construction fell by 1.2% in June, following a dip of 0.6% in May. This marks the third consecutive monthly decrease.

“Elevated mortgage interest rates have cooled the housing market, dampening home builder confidence and new home starts. Despite this, spending on single-family construction was still 9.9% higher than it was a year earlier.

“Multifamily construction spending inched up 0.1% in June after a dip of 0.6% in May. Year over year, spending on multifamily construction declined 7.4%, as an elevated level of apartments under construction is being completed.

“Private residential improvement spending increased 0.6% in June and was 10.4% higher compared to a year ago.

“Spending on private nonresidential construction was up 4.2% over a year ago. The annual private nonresidential spending increase was mainly due to higher spending for the class of manufacturing ($37.6 billion), followed by the power category ($13 billion).”