The Census Bureau reported that construction spending increased to a $175 billion seasonally adjusted rate in November from a $172 billion rate in October.
Overall spending on land development and building homes is up nearly 17% from a year ago.
Global Insight economists Patrick Newport and Stephanie Karol noted that private spending on residential construction enjoyed upward revisions to the October and September reports.
“Private spending on single-family homes recovered nicely after a small drop in October, rising 1.8% month-on-month. On the other hand, spending on multifamily structures lost a bit of steam, posting its slowest growth in four months,” say the economists.
Overall, the seasonally adjusted annual rate of private single-family and multifamily construction spending hit $345.5 billion in November—the highest rate since July 2008.