Total construction spending was down slightly for the month, but year-over-year numbers are still very positive, according to the Census Bureau’s May report…(Census Bureau)
- M-O-M: Total construction spending fell 0.1% for the month to a seasonally adjusted annual rate of $1.78B in May.
- Y-O-Y: Total construction spending was up 9.7% compared to the same time last year.
The good news for housing is the much sought after residential real estate spending was up for the month and up big for the year which should increase inventory levels…
- M-O-M: Private residential construction was up 0.2% to a seasonally adjusted annual rate of $938M in May.
- Y-O-Y: Private residential construction spending was up 19.0% compared to the same time last year.
NOTE: Single-family private construction spending was up 0.2% for the month and was up 15.1% year-over-year.
INTERESTING: Multifamily private spending was unchanged for the month and was actually down 3.6% year-over-year.
As a big YIMBY this is great news. As rates continue to rise, trepidation has been rising among builders. Even though there was a slight decline in total construction spending it is great see that builders are still building. Inventory levels will naturally rise as affordability issue force some wannabe buyers to rentals. We have a long way to go before inventory levels have normalized and we won’t get there without building so this was great to see.