Private Construction Remains Flat but Residential Sector Logs New Highs

Although barely higher than last month, residential records its 24th consecutive monthly gain with $938 billion in sales.

After growth of 20 percent over the past year, spending on residential projects appears to be plateauing.
While construction spending on new single-family homes also hit new highs, the actual number of these homes built has been gradually falling for almost two years.
Spending for multifamily housing has remained unchanged for the last two months, with an annual pace of $100 billion.
Remodeling by homeowners rose by 0.6 percent to $355 billion in the latest report. This is the highest remodel spend since these data was first collected – almost thirty years ago. However, the monthly increase was the lowest in a year.
For non-residential construction, Hotels & Motels fell 0.3 percent to $16 billion but has been essentially stable over the last ten months. Prior to the pandemic, construction spending were twice those levels.
The recent increases in interest rates and the expectation of an economic recession voiced by many companies suggest there won’t be a recovery in non-residential construction anytime soon.