The impact that public and private sector construction spending has on moving the lending needle is obvious, but the strength of what has been and what will be is even more relevant in times like now.
With that being said, construction spending posted a modest increase in July rising 0.7% from the revised June estimate of $1,075.9 billion to a seasonally adjusted annual rate of $1,083.4 billion. The July number was 13.7% higher than the previous estimate in July 2014 of $952.5 billion.
Privately funded residential construction was estimated at an annual rate of $380.8 billion, a 1.1% gain from June’s $376.6 billion and 15.6% above the level in July 2014. The single family share of that annual estimate was $218.5 billion, a 2.1% month-over-month increase and up 15.6% year-over-year. Construction of multi-family units consumed $51.6 billion of the total, down 2.2% from June but an annual increase of 21.2%.
What does this increase in residential construction mean for you as a buyer?
The uptick in construction spending from a residential perspective can usually be linked to an influx of real estate inventory in San Diego.
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