Construction spending up from a year ago

Homebuilding spurs 4 percent year-over-year increase in September

National /
Nov.November 02, 2020 12:46 PM
Homebuilders continue to be responsible for the majority of dollars spent on construction (iStock)

Homebuilders continue to be responsible for the majority of dollars spent on construction (iStock)

Construction spending this year is up 4.1 percent from last year, according to new data for September.

During the first nine months of the year, some $1.058 trillion has been put toward public and private construction, compared with $1.016 trillion for the same period in 2019.

The housing sector powered the gain, though growth tapered off in September.

Construction spending for the month was estimated to be $1.4 trillion, seasonally adjusted, which is a marginal 0.3 percent gain from August, according to the Census Bureau’s monthly report.

September’s spending represents a 1.5 percent year-over-year increase from $1.39 trillion in 2019.

Private residential construction was once again responsible for the majority of construction costs — and the only sector tracked by the report that saw month-over-month growth. Private homebuilders’ work was estimated at $610 billion in September, seasonally adjusted, up 2.8 percent from August’s $594 billion.

Sentiment among homebuilders hit an unprecedented high level last month, though buyer demand for newly built homes waned. Home prices continue to climb, however, amid record low levels of inventory. Housing starts in September were up 2 percent from August and 11 percent year-over-year.

Nonresidential private construction totaled $464 billion in September, down 1.5 percent from August’s estimated $471 billion. Public construction spending was also down with a total spend of $339 billion. That’s a drop of 1.7 percent from August’s $344.8 billion.





    Related Articles

    arrow_forward_ios
    Prologis CEO Hamid Moghadam and CFO Tom Olinger (Prologis, iStock)
    Supply-chain crisis likely to persist well beyond 2022: Prologis
    Supply-chain crisis likely to persist well beyond 2022: Prologis
    Uptown ATX (Brandywine Realty Trust)
    $24M metro station for $3B Texas development breaks ground
    $24M metro station for $3B Texas development breaks ground
    Grammy winner Pharrell Williams and David Grutman of Groot Hospitality (Getty Images, Groot Hospitality, TripAdvisor)
    Pharrell, David Grutman teaming up on 400-key Bahamas resort
    Pharrell, David Grutman teaming up on 400-key Bahamas resort
    (iStock/Illustration by Steven Dilakian for The Real Deal)
    Hochul plan for resi towers is tall order
    Hochul plan for resi towers is tall order
    (iStock/Illustration by Steven Dilakian for The Real Deal)
    Black mortgage applicants’ rejection disparity surges
    Black mortgage applicants’ rejection disparity surges
    From left: Joseph Riever and Christopher Marte (Elizabeth Street Garden, New York City Campaign Finance Board)
    After 10-year saga, judge’s delay keeps senior housing unbuilt
    After 10-year saga, judge’s delay keeps senior housing unbuilt
    Thompson Austin at 506 San Jacinto Boulevard, Austin, Texas (Hyatt)
    Don’t call it a comeback: Austin hotels rebound but building never slowed
    Don’t call it a comeback: Austin hotels rebound but building never slowed
    Donald Trump and Trump National Doral (Trump Hotels, Getty)
    Trump planning retail, luxury homes in Doral resort expansion
    Trump planning retail, luxury homes in Doral resort expansion
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...