Industry NewsMarkets & Economy

Home construction spending falls 53% from peak

Spending on residential, commercial projects drops 5% in '08

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Spending on residential construction dropped 27.2 percent in 2008 to $358.4 billion, the U.S. Census Bureau reported today, and was down 52.8 percent from a record peak of $676.4 billion in March 2006. The monthly rate of spending on private residential construction projects fell for the fourth straight month in December 2008 to $319.2 billion, the lowest level since April 1999. Total construction spending -- including public and private residential and commercial projects -- amounted to an estimated $1.08 trillion in 2008, down 5.1 percent from 2007. The pace of new-home sales and housing starts hit the lowest levels on record in December, the Census Bureau and U.S. Department of Housing and Urban Development reported last month (see Inman News). *** What's your opinion? Leave your comments below or send a letter to the editor. ...