Construction Spending Up

Construction spending jumped in November according to the latest data from the Census Bureau

Total construction spending during November 2020 was up for the month and year at $1,459.4 billion

  • M-O-M: Was up 0.9% from the revised October estimate of $1,446.9 billion
  • Y-O-Y: Was up 3.8% from the November 2019 estimate of $1,405.5 billion

Spending on private residential construction was also up for both the month and year at a seasonally adjusted annual rate of $658 billion

  • M-O-M: Was up 2.6% from the revised October estimate of $640 billion
  • Y-O-Y: Was up a whopping 16.1% from November 2019 when spending was $566 billion

FYI: Public residential construction in November saw the biggest jump with a big 32.6% gain from November 2019

Homes prices are appreciating at double-digit rates because you have more buyers than sellers. Adam Smith’s invisible hand has responded with a construction boom. Housing prices aren’t expected to go down anytime soon, but all this new inventory could help cool things down just a bit.