Spending on new single-family homes continued to expand rising 3.6 percent over December's pace. On a year-over-year basis the nominal value of spending on new single-family homes has risen over 30 percent. Since bottoming out around the midway point of 2009 construction spending has surged 65 percent. The current NAHB forecast calls for single-family housing starts to grow in 2013 with a slower pace of expansion anticipated during the first quarter of this year.
Construction spending on new multifamily projects also increased in January growing 1.7 percent from December 2012. Gains in spending have occurred in each of the last 16 months. On a year-over-year basis the level of apartment spending has increased almost 55 percent and has - as of January – more than doubled from the cyclical low set in August 2010.
Offsetting the gains in single-family and multifamily construction January saw a 4 percent drop in improvement spending that resulted flat headline growth for total private residential category. The 3-month moving average of remodeling spending was down almost 2 percent but remains near post-2007 highs.