Markets & Economy

Residential construction could indicate consumers returning to market

New homes starts will account for significant portion of annual spending
  • Residential construction will account for more than 35 percent of all U.S. construction spending this year.
  • “Permit growth indicates that our members feel confident that consumers are returning to the market,” said Tom Woods, chairman for the National Association of Home Builders (NAHB).
  • Despite this confidence, Woods noted that builders are reporting concerns with lot and labor availability.

Based on annual rates, residential construction will account for more than 35 percent of all U.S. construction spending this year. According to data from the U.S. Census Bureau, residential construction reached a seasonally adjusted annual rate of $383.3 billion in August, an increase of 1.3 percent from the July estimate of $378.5 billion. Total U.S. construction during August was estimated at an annual rate of $1,086.2 billion. Other figures from the bureau show that single-family starts reached a seasonally adjusted rate of 739,000 during August, with the number of housing units authorized by building permits in hitting a rate of 699,000 -- a 2.8 percent increase from July. “Permit growth indicates that our members feel confident that consumers are returning to the market,” said Tom Woods, chairman for the National Association of Home Builders (NAHB). A recently released housing market index from NAHB found that builders’ confidence in the newly constructed si...