Construction spending up from a year ago

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

National /
Nov.November 02, 2020 02:00 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
    Renderings of the project (Group P6)

    Group P6 lands $69M construction loan for Boca Raton project

    Group P6 lands $69M construction loan for Boca Raton project
    Ben Schachter, Sean Black and Mike Pappas (Signature, Getty, Keyes)

    Knock expands home lending program into South Florida 

    Knock expands home lending program into South Florida 
    (iStock)

    South Florida October construction starts drop, year-over-year

    South Florida October construction starts drop, year-over-year
    Alex Sapir and Bella Sapir (Credit: Mark Von Holden/WireImage via Getty Images, and ADRIEL REBOH/Patrick McMullan via Getty Images)

    Alex Sapir’s family closes on condos at Sapir’s Arte in Surfside

    Alex Sapir’s family closes on condos at Sapir’s Arte in Surfside
    Aria Mehrabi and renderings of the projects

    Target-anchored mixed-use project planned for North Beach advances

    Target-anchored mixed-use project planned for North Beach advances
    Dan Azel with 8900 Southwest 107th Avenue and 10700 Southwest 88th Street (Credit: Google Maps)

    Construction honcho pays $17M for Kendall office buildings

    Construction honcho pays $17M for Kendall office buildings
    Renderings of the project and Gil Dezer (Getty; Renderings via  Zyscovich Architects)

    Dezer’s 30-acre megaproject in North Miami Beach gets first approval

    Dezer’s 30-acre megaproject in North Miami Beach gets first approval
    August construction starts rose in South Florida

    South Florida construction starts rose in August

    South Florida construction starts rose in August
    arrow_forward_ios

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

    Loading...