Spending on both private residential construction and new single-family construction reached the highest level in more than eight years, a cheerful sign of the home building industry's ongoing recovery, according to a Friday release from the U.S. Department of Commerce.
Spending on private residential construction climbed to $447.9 billion in February, continuing the upward trend that made January, which was revised upward to $443.8 billion, the highest pace since the $432.8 billion mark registered in November 2007. Spending in the private residential construction sector has been trending up steadily during the past six years--after falling to a low of $230.5 billion in May 2009--but it remains well below the pre-crisis peak level of $678.0 billion as of February, 2006.
New single-family construction outlays rose to $235.0 billion by 1.2% month-over-month and 10.6% year-over-year, the highest level since January 2008. Spending on new multi-family construction was also on the rise to $59.8 billion, up 0.9% month-over-moth and up 24.1% year-over-year.
The overall construction industry (including total private construction and total public construction) slightly slid to a seasonally adjusted annual rate of $1.14 trillion this month, 0.5% below the revised January rate of $1.15 trillion. Total residential construction (including both private and public) increased 10.5% from last year's $410.7 billion to a rate of $453.7 billion this February.