According to the recently released May analysis from the U.S. Census Bureau, private residential construction spending continued its steady upward trend. Compared to a year ago, spending is up 1.8% and surpassed the previous month by 0.4.
This is the third consecutive month of gains, following the slight dip in activity in February. The current pace is a moderate sign of a stabilizing market, despite consumer economic uncertainty and rise in material costs.
Looking forward, the effects of the 21st Century ROAD to Housing Act is expected to streamline review for builders and diminish some of the costly boundaries for builders.
“Multifamily construction spending growth has also slowed down after the peak in June 2023, with the index largely plateauing since late 2024,” said Catherine Koh an economist at the National Association of Homebuilders. “In contrast, improvement spending has been on an upward trend since the beginning of 2025, supported in part by the aging housing stock and sustained demand for renovation.
