Total construction spending in November 2022 increased modestly by 0.2% over the previous month, topping $1.8 trillion, according to the latest data from the U.S Census Bureau, with private construction spending rising by 0.3% to $1.42 trillion as builders may be seeing some reason for optimism in the relatively near future.
But it remains unclear whether or not a shift in construction spending will include the housing market. Residential construction spending remains above last year’s levels, up 5.3% from November 2021, while overall construction spending is higher by 8.5%.
Residential construction spending continued to fall in November, down 0.5% from the previous month at $868 billion, although spending on multifamily residential projects skewed up at 2.4%. Spending on residential projects has fallen or remained flat since May.
New single-family spending was down 2.9% in November, and fell 10.2% from a year ago. Decreases in residential construction have slowed, however,
As interest rates shot up over the course of 2022, home builders broadly pulled back, although a strong rental market (among other factors) have kept the multifamily sector growing. New multifamily spending is up 10.7% year-over-year.
Overall construction spending was up and down last year, rising between January and April, but down significantly through the summer and fall.
November’s increase was driven by private non-residential investments—education, energy infrastructure and office. Public construction spending remained essentially flat from the previous month.
