2017 closed out with strong growth for the construction industry, particularly in residential construction. Builder confidence also remained high.
The results may not be visible yet, but spending rose this fall according to NAHB analysis of Census data. In November spending went up by 1% to a seasonally adjusted annual rate of $530.8 billion. It follows a clear upward trend: in November, spending also reached the highest level it’s been since 2007. This represented an almost 8% over last year.
Private nonresidential construction didn’t fare as well, falling 3.1% from last year.
The struggles of the nonresidential market aside, this could be a sign of a healthy market. Single-family housing starts were up last fall, and builder confidence along with them.
Together, these indicators seem to be setting the stage for a healthier housing market in the rest of 2018.