Housing Market Posts Double-Digit YOY Increases in October Construction Spending

Construction spending during Oct. 2020 was estimated at a seasonally adjusted annual rate of $1,438.5 billion, +1.3% above the revised September estimate of $1,420.4 billion. According to the latest U.S. Census Bureau data, the October figure is +3.7% above the Oct. 2019 estimate of $1,386.8 billion. During the first 10 months of this year, construction spending amounted to $1,189.6 billion, +4.3% percent above the $1,140.4 billion for the same period in 2019.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $1,093.7 billion, +1.4% above the revised September estimate of $1,078.9 billion. Nonresidential construction was at a seasonally adjusted annual rate of $456.6 billion in October, -0.7% below the revised September estimate of $459.9 billion.

Residential construction was at a seasonally adjusted annual rate of $637.1 billion in October, +2.9% above the revised September estimate of $619.1 billion. Single-family housing starts were up a robust+5.6% in October to $324 billion, an impressive +13.3% increase over Oct. 2019. Multi-family construction was up +1.2% in October to $90.2 billion — an +18.4% increase over Oct. 2019.

Public construction. In October, the estimated seasonally adjusted annual rate of public construction spending was $344.8 billion, +1% above the revised September estimate of $341.4 billion. Educational construction was at a seasonally adjusted annual rate of $86.4 billion, +1.1% above the revised September estimate of $85.4 billion, but -1.9%below Oct. 2019.