Residential Construction Spending Falls in June

Driven primarily by a lack of spending in the single-family market, private residential construction spending fell by 0.7% in June. According to the National Association of Home Builders’ Eye On Housing blog, this marks the sixth straight month of decreases. Compared with the same time one year ago, construction spending was down even further by 6.2%.

The lack of spending comes as ongoing affordability concerns continue to hinder buyer activity, particularly in the single-family sector. Single-family construction spending declined by 1.8% month-over-month in June, and compared with one year ago, single-family construction spending decreased by 5.3%. At the same time, single-family starts in June decreased by 4.6% to an 883,000 seasonally adjusted annual rate and are down by 10% compared with June 2024.

Meanwhile, multifamily construction spending stayed flat for the month but continued to follow the downward trend that began in mid-2023. Compared to June 2024, multifamily spending was down 9.5%. Improvement spending (remodeling) was up 0.5% in June but was 6.1% lower on a year-over-year basis.