WASHINGTON (1/5/15)--Overall construction spending dropped in November by 0.3%, but, led by single-family home construction, gains were witnessed in the private and public residential markets, according numbers released Friday by the Census Bureau (Economy.com Jan. 2).
Private construction spending climbed 0.3% in November to $697 billion and rose 2% since the same period last year.
Each subcomponent drove private construction spending higher, with single-family recording a 1% month-over-month increase and multifamily construction climbing 1.1%.
Single-family home construction spending also came in 12.5% higher than levels seen in 2013.
"Shifting demand toward renting in recent years has generated a sustained boom in multifamily residential construction," said Christopher Velarides, Moody's analyst (Economy.com). "On the other hand, single-family home construction is well away from passing its prerecession peak."
Private nonresidential construction spending fell 0.3% in November, but still came in higher by 4.7% year-over-year.
Construction spending overall, while down for the month, still was 2.4% higher than November 2013's pace.