Flight from the Cities: Single Family Home Construction Jumps 5.6% in October

NEW YORK, NY - AUGUST 16: Construction laborers work on the site of a new residential building in the Hudson Yards development, August 16, 2016 in New York City. Home construction in the U.S. accelerated in July to the fastest pace in five months. While housing starts were up 2.1 …
Drew Angerer/Getty

U.S. construction spending jumped by more than expected in October, driven higher by demand for single family homes.

The Census Bureau reported that construction spending rose a seasonally-adjusted 1.3 percent in October compared with September. Compared with a year ago, October construction spending is up 3.7 percent.

During the first ten months of this year, construction spending amounted to $1.19 trillion, 4.3 percent above the same period in 2019.

Single-family home construction climbed an astounding seasonally adjusted 5.6 percent in October, helping to lift total private residential construction 2.9 percent for the month. Compared with October of 2019, single-family construction spending is up 13.3 and total private residential construction is up 14.5 percent. Year to date, single-family construction spending is up 5 percent.

Nonresidential private construction fell 0.7 percent, weighed down by a 3.1 percent decline in construction spending on hotels and motels. On an annual basis, spending in the lodging category is down 12.7 percent. Office construction fell two-tenths of a percentage point for the month and is down 5.1 percent year-to-date.

Spending on construction of manufacturing facilities fell eight-tenths of the percentage point and is down 8.4 percent year to date.

Government spending overall rose 1 percent in October and is up 4.7 percent year to date. The smaller category of public spending on housing construction is up 34 percent year to date to $7.1 billion year to date.


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