Private residential construction spending declined 0.9% in April, marking the third consecutive monthly decrease.
This drop was mostly caused by lower spending on single-family construction and home upgrades.
Total spending fell 4.8% from a year ago, as the housing sector continues to manage economic uncertainties caused by persistent tariff concerns and high mortgage rates.
According to the most recent US Census Construction Spending data, single-family construction spending fell by 1.1% in April.
This reduction is consistent with the downturn in April single-family starts and the NAHB/Wells Fargo Housing Market Index (HMI).
The April report marks the end of seven months of growth in single-family construction spending, bringing it down 2.2% from a year earlier.
Meanwhile, improvement spending fell 0.8% in April, and was 5.5% lower year on year.
Multifamily building spending fell 0.1% in April, continuing the negative trend that began in December 2023. Multifamily spending fell 11.3% from April 2024.
The graph below shows the NAHB construction spending index.
The indicator shows how spending on single-family construction has declined since early 2024 as a result of rising interest rates and concerns about building material tariffs.
Multifamily construction spending growth has likewise declined from its peak in July 2023. Improvement spending has also been declining since the start of 2025.
Spending on private nonresidential building increased 1% over the previous year.
The annual increase in private nonresidential spending was primarily driven by higher spending for the class of power ($7.9 billion), followed by the office category ($3.3 billion).
[Read more about this topic on Eyeonhousing.org]