August Private Residential Construction Spending Edges Higer 

2025-11-17T11:14:28-06:00

Private residential construction spending inched up 0.8% in August, continuing steady growth since June 2025. This modest increase was primarily driven by more spending on multifamily construction and home improvements. However, total spending was 2% lower than a year ago, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates.  According to the latest U.S. Census construction spending data, single-family construction spending slipped 0.4% in August, in line with the soft builder sentiment reflected in the August NAHB/Wells Fargo Housing Market Index (HMI). Compared to a year ago, single-family construction spending decreased by 1.1%. Improvement spending (remodeling) posted a solid 8.2% gain for the month, but it remained 1.3% lower than in August 2024. The remodeling sector continues to show resilience, supported by strong homeowner equity and persistent demand for home improvements. Meanwhile, multifamily construction spending rose 0.2% in August, marking a pause in the downward trend that began in mid-2023. Compared to a year earlier, multifamily spending was down 7.1%.   The NAHB construction spending index is shown in the graph below. The index illustrates how   spending on single-family construction has slowed since early 2024 under the pressure of elevated interest rates and concerns over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in July 2023. Improvement spending has also been weakening since the beginning of 2025.  Spending on private nonresidential construction was down 4% over a year ago. The annual private nonresidential spending decrease was primarily driven by a $20 billion drop in manufacturing construction spending, followed by a $11 billion decrease in commercial construction spending.

August Private Residential Construction Spending Edges Higer 2025-11-17T11:14:28-06:00

Remodelers on the Rise: How Renovation is Reshaping Residential Construction

2025-11-10T08:18:08-06:00

As the nation’s housing stock continues to age and new homes remain out of reach for many buyers, remodeling is capturing a growing share of the residential construction market, both in terms of the number of firms and employment. With most U.S. households unable to afford new construction, renovation has become a more practical and cost-effective alternative to improve housing conditions, driving demand on the consumer side. On the supply side, many home builders undertake remodeling projects to grow their business. NAHB’s analysis of the quarter-century of Quarterly Census of Employment and Wages (QCEW) data suggests that the rise of remodelers is a sustained structural shift rather than a temporary post-pandemic surge. Remodeling Firms’ Share in Residential Construction is RisingOver the past 25 years, the number of remodeling establishments has nearly doubled—from fewer than 69,000 in 2000 to more than 128,000 in the first quarter of 2025. Remodelers now represent over half (56%) of all residential building construction (RBC) establishments. By contrast, during the mid-2000s housing boom, remodelers’ share consistently hovered around 38–39%, when the market was dominated by home builders, including new single-family and multifamily general contractors as well as speculative (spec) home builders. Although the remodeling sector was not immune to the 2008 housing crash, its losses were modest compared to the contraction of home building. Between 2007 and 2012, the number of remodeling establishments fell by 8%, while roughly one-third of home builders went out of business. As a result, the remodeler’s share of the RBC sector rose sharply after the crash, reaching 46% in 2011, and has continued to climb steadily ever since. During the post-pandemic housing boom, driven by low mortgage rates, the rise of remote work, and a renewed demand for larger living spaces, both remodelers and home builders experienced solid growth. However, remodelers expanded their ranks at a faster pace, with their share of RBC firms climbing to 54% by 2022. Less sensitive to fluctuations in mortgage rates than home builders, remodelers have continued to grow even amid a series of aggressive Federal Reserve rate hikes that sharply increased the cost of home purchases and slowed new construction. As of 2024, remodeling firms account for 56% of all RBC establishments. Remodeling Employment Share in RBC is Rising In the overall construction industry, which encompasses residential and non-residential building construction, as well as heavy/civil engineering construction, land subdivision, and specialty trade contractors, it is the latter that dominate the overall sector employment. However, the government employment surveys cannot identify what portion of subcontractors’ business is devoted to remodeling. As a result, RBC is the subsector that allows tracking the remodeling trends best. The analysis of employment trends in residential building construction reveals a similar pattern, with remodelers generating a rising number and share of jobs, largely at the expense of single-family general contractors. As of 2024, the remodeling sector accounted for almost half (49%) of RBC workers. In contrast, during the housing boom of the mid-2000s, only 30% of payroll employees worked for remodelers, while single-family general contractors employed 63% of the RBC workforce. The shift is even more pronounced within the production (nonsupervisory) workforce of the RBC industry.  More than half (51.2%) of these skilled craftsmen now work for remodeling firms, compared with roughly 30% in the early 2000s, according to NAHB’s analysis of historical data from the Bureau of Labor Statistics’ Current Employment Statistics (CES) survey. Multifamily general contractors, who subcontract out most of their construction work, account for a smaller share of home building jobs but have also gained ground. Fueled by strong multifamily activity in 2022–2023, their share of RBC employment grew to 5% by 2024. For-sale builders account for an additional 6%. The typical remodeling firm remains small, averaging between 3 and 4 employees per establishment, comparable to levels observed during the mid-2000s housing boom. This stability suggests that the overall rise in remodeling employment stems primarily from the creation of new firms or the reclassification of home builders shifting toward renovation work as remodelers. It is likely that, as market conditions change, some home builders, particularly smaller single-family general contractors, pivot toward renovation projects to stay and grow their business. The remodeling sector’s lower barriers to entry, smaller upfront investments compared to new construction, and fewer regulatory hurdles make the transition easier. As more companies view remodeling as their primary activity and revenue source, more will be reclassified as remodeling establishments in the official data reporting. This is because data collection in the U.S. is guided by the North American Industry Classification System (NAICS). Under NAICS, a company self-classifies and chooses the industry code that best captures its primary activity. In some surveys, such as the Economic Census, the Census Bureau emphasizes revenue sources as a primary metric for categorizing businesses. The steadily rising number of remodelers and the jobs they create underscores that renovation has become the reliable engine driving growth in the residential construction sector.

Remodelers on the Rise: How Renovation is Reshaping Residential Construction2025-11-10T08:18:08-06:00

Builders Stay Cautious as Single-Family Permits Weaken

2025-10-15T08:16:46-05:00

In August, single-family permit activity softened, reflecting caution among developers amid persistent economic headwinds. This trend has been consistent for eight continuous months. On the multifamily front, permitting also cooled in August but remains in the positive territory. While single-family continues to bear the brunt of affordability headwinds, the multifamily space is showing tentative signs of rebalancing. Over the first eight months of 2025, the total number of single-family permits issued year-to-date (YTD) nationwide reached 637,096. On a year-over-year (YoY) basis, this is a decline of 7.1% over the August 2024 level of 685,923. For multifamily, the total number of permits issued nationwide reached 330,617. This is 1.4% higher compared to the August 2024 level of 326,080. HBGI analysis indicates that this growth for multifamily development has been concentrated in lower density areas and among smaller builders. Year-to-date ending in August, single-family permits were up in one out of the four regions. The Midwest posted a minor increase of 1.0%. The Northeast was 4.4% lower, the South was down by 7.5%, and the West was down by 11.5% in single-family permits during this time. For multifamily permits, three out of the four regions posted increases. The Midwest was up by 17.2%, the West was up by 9.1%, and the South was up by 1.9%, Meanwhile, the Northeast declined steeply by 23.5%, driven by the New York-Newark-Jersey City, NY-NJ MSA which declined by 34.0%. Between August 2025 YTD and August 2024 YTD, 12 states posted an increase in single-family permits. The range of increases spanned 21.2% in Hawaii to 2.5% in Indiana. The remaining 38 states and the District of Columbia reported declines in single-family permits with New Mexico reporting the steepest decline of 35.1%. The ten states issuing the highest number of single-family permits combined accounted for 62.5% of the total single-family permits issued. Texas, the state with the highest number of single-family permits, issued 101,850 permits over the first eight months of 2025; this is a decline of 8.2% compared to the same period last year. The second highest state, Florida, decreased by 11.7%, while the third highest, North Carolina, posted a decline of 3.9%. Between August 2025 YTD and August 2024 YTD, 31 states and the District of Columbia recorded growth in multifamily permits, while 19 states recorded a decline. Mississippi (+113.2%) led the way with a sharp rise in multifamily permits from 250 to 533, while Maryland had the largest decline of 45.8% from 4,383 to 2,374. The ten states issuing the highest number of multifamily permits combined accounted for 60.0% of the multifamily permits issued. Over the first eight months of 2025, Florida, the state with the highest number of multifamily permits issued, experienced an increase of 20.0%. Texas, the second-highest state in multifamily permits, saw an increase of 1.5%. California, the third largest multifamily issuing state, increased by 10.1%. At the local level, below are the top ten metro areas that issued the highest number of single-family permits. For multifamily permits, below are the top ten local areas that issued the highest number of permits. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Builders Stay Cautious as Single-Family Permits Weaken2025-10-15T08:16:46-05:00

Square Foot Prices Moderate in 2024

2025-10-02T08:19:47-05:00

Median square foot prices for new single-family detached (SFD) homes started in 2024 grew modestly, according to NAHB’s analysis of the latest Survey of Construction (SOC) data. For custom, or contractor-built, homes, the median price was $166 per square foot of floor space1, up slightly from $162 in 2023. For spec starts, after excluding record-high improved lot values, the median was $153 per square foot of floor area, inching up from $150 a year earlier. There is still notable regional variation in square footage prices. In New England, after excluding lot values, half of the spec homes started in 2024 had prices exceeding $282 per square foot. In the East South Central division, the median was $133, representing the most affordable prices per square foot.Contract prices of custom homes do not include the value of an improved lot, as these homes are built on the owner’s land (with either the owner or a contractor acting as a general contractor). Consequently, contract prices are typically reported as lower than the sale prices of spec homes. To make the comparison more meaningful, the cost of lot development is excluded from sale prices in this analysis. The recent modest square foot price changes marked a sharp decline from the double-digit price hikes that characterized home building in the post-pandemic environment. As recently as 2022, increases in square foot prices of new SFD homes were approaching 20%, more than doubling the historically high U.S. inflation rate of 8%. The deceleration for median square foot prices reflects slower growth in building material prices and home building wages in 2024. The shifts towards cost-effective methods, such as building homes on slabs rather than with full or partial basements, also contributed to moderating the increases in square foot prices.In the for-sale market, the New England division registered the highest and fastest-rising median square foot prices. Half of the new for-sale SFD homes started here in 2024 were sold at prices exceeding $282 per square foot of floor area, paid on top of some of the most expensive lot values in the nation. The Pacific division came in second, with median prices of $223 per square foot. The most economical SFD spec homes were started in the South region, where the median sales price per square foot was below the national median of $153. The East South Central division is home to the least expensive for-sale homes. Half of all for-sale SFD homes started in the division in 2024 registered a square foot price of $140 or lower, paid on top of the most economical lot values in the country. The other two divisions in the South— South Central and South Atlantic—registered median prices of $144 and $147 per square foot, ranking them the second- and third-lowest medians in the nation. Because square foot prices in this analysis exclude the cost of developed lots, highly variable land values cannot account for regional differences in square footage prices. However, overly restrictive zoning, stricter building codes, and higher regulatory costs undoubtedly lead to higher per-square-foot prices. Regional differences in home types, common features, and construction materials also contribute to price variations. In the South, for example, lower square foot prices partially reflect a less frequent regional occurrence of costly new home features like basements. In the custom home market, new contractor-built SFD homes in the Northeast were more expensive to build. Half of custom SFD homes started in New England in 2024 registered prices greater than $190 per square foot of floor area. In the neighboring Middle Atlantic, the median custom home price was similarly high at $188 per square foot. The East North Central division came in close third, with a median of $186 per square foot of floor space. The East South Central and West South Central divisions are home to the most economical custom homes started in 2024, with half of the new custom homes registering prices at or below $129 and $138 per square foot of floor space, respectively. The remaining division in the South region — South Atlantic — recorded slightly higher median square foot contract prices of $155, still below the national median of $166. In the West, the Mountain division registered noticeable declines in square foot prices over the last two years, erasing a substantial portion of the post-pandemic double-digit annual hikes. Half of the custom SFD homes started here in 2024 had prices of $169 per square foot or higher. The corresponding median price in the neighboring Pacific was $167 per square foot. In comparison, during the post-pandemic home building boom, the median crossed the $200 mark for homes started in 2022 in the Mountain Division. Typically, when excluding improved lot values, contractor-built custom homes are more expensive per square foot than for-sale homes. Over the last two decades, this custom home premium averaged slightly above 9%, suggesting that new custom home buyers are not only willing to wait longer to move into a new home but also pay extra for pricier features and materials. However, these custom home premiums (see the chart below) largely disappeared in the post-pandemic environment marked by supply chain disruptions, soaring building materials costs, and home prices hitting new highs each month. In the last two years, the custom home premium returned to historic norms, indicating that the post-pandemic trend has reversed, and custom home buyers are once again willing to pay more for higher-end features and materials. The NAHB estimates in this post are based on the Survey of Construction (SOC) data. The survey information comes from interviews with builders and owners of the selected new houses. The reported prices are medians, meaning that half of all builders reported higher square foot prices, and the other half reported prices lower than the median. While the reported median prices cannot reflect the price variability within a division, and even less so within a metro area, they, nevertheless, highlight the regional differences in square foot prices. For the square footage statistics, the SOC uses all completely finished floor space, including space in basements and attics with finished walls, floors, and ceilings. This does not include a garage, carport, porch, unfinished attic, utility room, or any unfinished area of the basement. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Square Foot Prices Moderate in 20242025-10-02T08:19:47-05:00

Characteristics of Homes Built in Age-Restricted Communities

2025-09-29T09:19:49-05:00

In 2024, approximately 43,000 homes were built in age-restricted communities, representing just over 3% of all housing starts. According to the Census Bureau’s Survey of Construction, roughly three-quarters of these homes (32,000) were single-family units. The remaining 11,000 were multifamily units, which marked the lowest number of age-restricted multifamily starts since 2009. In 2009, during the depths of the housing downturn, builders started only 17,000 homes in age-restricted communities (9,000 single-family and 8,000 multifamily).  The numbers then increased steadily until reaching 60,000 age-restricted starts (roughly evenly split between single-family and multifamily) in 2018. These numbers decreased during the pandemic but rebounded in 2021-2022, almost reaching the peak from 2018. In 2024, the total number of age-restricted home starts decreased by approximately 12% from 2023. This drop came amid a broader slowdown in overall housing starts. While total single-family starts increased by about 7% year-over-year, multifamily starts fell sharply by 25%. A similar trend played out in the age-restricted segment: single-family starts increased, while multifamily starts declined. In terms of market share, age-restricted single-family homes maintained their 3.16% share of all single-family starts, but the share of age-restricted multifamily units fell to 3.11%. Age-restricted single-family homes carried a noticeable price premium in 2024. The median sales price reached $525,000—about 25% higher than the $421,000 median for non-age-restricted homes. While new non-age-restricted home prices held steady compared to the previous year, prices for age-restricted homes rose by 5%. Age-restricted homes tended to be larger, averaging 2,200 square feet versus 2,100 square feet. However, the price per square foot remained elevated at $155.90, compared to $154.30 for non-age-restricted homes. Lot values may help explain part of the price difference. Age-restricted homes were typically built on more expensive lots, with a median value of $62,000 compared to $60,000 for non-age-restricted homes. Despite the higher price, these lots were smaller, averaging 0.16 acres versus 0.20 acres. Additional data from the 2024 SOC reveal that age-restricted homes have distinct characteristics compared to non-age-restricted homes. A higher percentage of age-restricted homes are attached, single-story, and lack a basement. These homes are also more likely to come with patios and porches, but less likely to have decks.  Finally, age-restricted homes are less likely to require a loan and more likely to be purchased for cash, as older home buyers have had longer to accumulate savings and assets (often equity in a previous home) that can be converted into cash. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Characteristics of Homes Built in Age-Restricted Communities2025-09-29T09:19:49-05:00

Builders Stay Cautious as Single-Family Permits Extend Downtrend

2025-09-15T09:16:49-05:00

Single-family housing permits slipped for the seventh month in a row, highlighting affordability headwinds and weak demand. While multifamily permits ticked up, the sector’s volatility leaves the outlook uncertain. The split underscores a housing market still under strain, with single-family softness weighing on broader growth prospects. Over the first seven months of 2025, the total number of single-family permits issued year-to-date (YTD) nationwide reached 565,208. On a year-over-year (YoY) basis, this is a decline of 5.7% over the July 2024 level of 599,308. For multifamily, the total number of permits issued nationwide reached 286,836. This is 2.6% higher compared to the July 2024 level of 279,618. Year-to-date ending in July, single-family permits were up in one out of the four regions. The Midwest posted a small increase of 2.0%. The Northeast was 2.5% lower, the South was down by 6.6%, and the West was down by 8.3% in single-family permits during this time. For multifamily permits, three out of the four regions posted increases. The Midwest was up by 23.3%, the West was up by 5.9%, and the South was up by 5.7%, Meanwhile, the Northeast declined steeply by 26.8%, driven by the New York-Newark-Jersey City, NY-NJ MSA which declined by 38.0%. Between July 2025 YTD and July 2024 YTD, 16 states posted an increase in single-family permits. The range of increases spanned 18.1% in Hawaii to 0.5% in New Jersey. The remaining 34 states and the District of Columbia reported declines in single-family permits with the District of Columbia reporting the steepest decline of 28.8%. The ten states issuing the highest number of single-family permits combined accounted for 62.8% of the total single-family permits issued. Texas, the state with the highest number of single-family permits, issued 90,561 permits over the first seven months of 2025; this is a decline of 7.2% compared to the same period last year. The second highest state, Florida, decreased by 11.9%, while the third highest, North Carolina, posted a decline of 2.2%. Between July 2025 YTD and July 2024 YTD, 29 states recorded growth in multifamily permits, while 21 states and the District of Columbia recorded a decline. Mississippi (+97.3%) led the way with a sharp rise in multifamily permits from 222 to 438, while Wyoming had the largest decline of 53.1% from 196 to 92. The ten states issuing the highest number of multifamily permits combined accounted for 61.6% of the multifamily permits issued. Over the first seven months of 2025, Florida, the state with the highest number of multifamily permits issued, experienced an increase of 23.8%. Texas, the second-highest state in multifamily permits, saw an increase of 10.9%. California, the third largest multifamily issuing state, increased by 5.8%. At the local level, below are the top ten metro areas that issued the highest number of single-family permits. For multifamily permits, below are the top ten local areas that issued the highest number of permits. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Builders Stay Cautious as Single-Family Permits Extend Downtrend2025-09-15T09:16:49-05:00

Parking Trends in Newly Completed Single-Family Homes, 2024

2025-09-11T08:17:15-05:00

In 2024, 65% of newly completed single-family homes featured two-car garages, according to NAHB’s analysis of the Census’s Survey of Construction data. The share of new homes with three or more car garages stood at 15%, continuing a downward trend from its peak of 24% in 2015 and decreasing 2 percentage points from 2023. On the other hand, one-car garages, which have been steadily increasing in recent years, reached 9% – their highest share in three decades. Shares of homes with carports and homes without any parking facility remained steady, accounting for 1% and 9% of completions, respectively.  The 2024 data also show notable differences in parking facility shares across Census divisions. Two-car garages led in every region but ranged from 54% of completions in the East North Central to 72% in the West South Central. Three or more car garages were most common in the West North Central (33%), followed by the East North Central (28%) and Mountain (27%) divisions, but accounted for only 4% of completions in New England. One-car garages were most prevalent in the Middle Atlantic (19%) and South Atlantic (14%), compared with under 5% in several Midwest and Mountain divisions. “Other” parking options, including carports and off-street parking, reached their highest share in the East South Central (17%) and New England (14%), while making up only 5% in the West North Central. These figures illustrate how the second-most common parking type after two-car garages varies greatly depending on the size and density of the region. Garage size also tended to grow with the house. Smaller homes – under 1,200 square feet – were most likely to come with “other” parking options, making up 70% of completions in that size category.  One-car garages were most common in homes between 1,200 and 1,599 square feet, at 20%. Two-car garages were the leading choice for homes between 1,200 and 4,999 square feet, with their share peaking at 82% for homes between 2,000 and 2,399 square feet.  Among the largest homes – those exceeding 5,000 square feet – three or more car garages were the most prevalent option, comprising 70% of completions. Taken together, the 2024 figures show that the two-car garage remains the most common parking option for new single-family construction. They also highlight where shifts in shares have occurred. Larger garages, such as those with three or more spaces, have been gradually losing ground, while smaller one-car garages have inched upward to their highest share in decades. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Parking Trends in Newly Completed Single-Family Homes, 20242025-09-11T08:17:15-05:00

Share of New Homes with Patios Edges Down for First Time in Fifteen Years

2025-09-09T10:16:12-05:00

For the first time in 15 years, the share of new homes with patios finally declined in 2024, according to NAHB tabulation of data from the Survey of Construction (conducted by the U.S. Census Bureau with partial funding from the Department of Housing and Urban Development). Of the roughly 1.0 million single-family homes started during the year, 61.8% came with patios. This is down from 63.7% in 2024 and marks the lowest the percentage has been since 2020. Historically, fewer than half of new homes came with patios during the 2008-2011 period of extreme weakness in the housing market. But soon thereafter, the share jumped to 52.4% in 2012 and has been climbing ever since. The percentage increased every year from 2012 through 2023 (except in 2015, when it was unchanged before the dip in 2024. Historically, fewer than half of new homes came with patios during the 2008-2011 period of extreme weakness in the housing market. But soon thereafter, the share jumped to 52.4% in 2012 and has been climbing ever since. The percentage increased every year from 2012 through 2023 (except in 2015, when it was unchanged before the dip in 2024. During this period, the broad geographic distribution of new homes with porches has remained relatively consistent. At the low end of the scale, only 14% percent of new single-family homes built in New England and 23% in the Middle Atlantic came with patios in 2024. At the high end, the incidence of patios on new homes was over 80% in the West South Central and around 70% in the South Atlantic and Mountain divisions. Additional detail on the characteristics of new-home patios is available from the Annual Builder Practices Survey (BPS) conducted by Home Innovation Research Labs. For the U.S. as a whole, the 2025 BPS report (based on homes built in 2024, like the SOC-based statistics cited above) shows that the average size of a new-home patio is about 320 square feet, but with considerable geographic variation. The average is over 400 square feet in the adjacent East North Central and East South Central divisions. New home patios are considerably smaller on the other side of the Mississippi River, with an average size of under 200 square feet in the West South Central, and only a little over 200 square feet in the West North Central division. In most parts of the country, poured concrete dominates all other building materials used in new-home patios.  Across the entire country, poured concrete accounts for over 60% of new-home patios on a square-foot basis. The major counter-example is the New England division, where builders use concrete pavers and natural stone more often than poured concrete. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Share of New Homes with Patios Edges Down for First Time in Fifteen Years2025-09-09T10:16:12-05:00

HVAC in New Construction in 2024

2025-09-04T08:16:00-05:00

Almost all of new single-family homes started in 2024 used either an air/ground source heat pump or a forced air system for the primary heating equipment (97%), according to the Census’s Survey of Construction. Additionally, 20% percent of homes also used a secondary type of heating equipment.  Heating Systems The type of heating system installed varies significantly by Census Division. Figure 3 displays the share of new homes with an air or ground heat pump in 2024. In warmer regions of the country, these systems are more common with 82% in the South Atlantic and 77% in the East South Central. In colder regions, very few homes have air or ground heat pumps: only 7% of new homes started in both East North Central and West North Central. Forced air systems without heat pumps burn fuel to produce heat, while heat pumps transfer heat by moving air. In colder climates, heat pumps can become less efficient due to limited ambient heat available and rely more heavily on backup heating during winter. In general, the share of new homes using an air or ground source heat pump as the primary means of providing heat has increased, going from 23% in 2000 to 47% in 2024. Meanwhile, the share relying on a forced air system has slipped, going from 71% to 50% in the same time frame. Primary Fuel for Heating The SOC also provides data on the primary fuel used to heat new single-family homes. Approximately 54% of new homes started in 2024 use electricity as the primary heating fuel, compared to 41% powered by natural gas, 3% using bottle or liquified petroleum gas (propane), and 0.1% using oil. Heating fuel sources closely align with the types of heating systems used, with air and ground-source heat pumps running on electricity and most forced air systems without heat pumps using natural gas or propane. Similar to the type of heating system, the primary heating fuel source varies significantly by region of the country. For example, in the Middle Atlantic only 13% of new homes use electricity as the primary heating source. In contrast, 83 percent and 74 percent of new homes started in the South Atlantic and the East South Central used it. Additionally, while most regions fall under 10% in their usage of propane, New England had a 33% share and East North Central had 15%. Air Conditioning In 2024, 98% of new single-family homes started had a central AC system, virtually unchanged from 2023. This percentage has risen steadily since 2000 when only 85.5% of homes had  central AC. Though the share of new single-family homes started with central AC differs across the country’s nine Census divisions, the highest share is concentrated in the South region: 100% of homes started in the South Atlantic, East South Central, and West South Central divisions had central AC installed. Other regions also have shares close to 100%, ranging from 93% in East North Central to 99% in West North Central. New England has the lowest share at 85%. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

HVAC in New Construction in 20242025-09-04T08:16:00-05:00

June Private Residential Construction Spending Edges Higher 

2025-09-02T11:15:45-05:00

Private residential construction spending inched up 0.1% in June, registering the first monthly gain after six consecutive declines. This modest increase was primarily driven by more spending on single-family construction and home improvements. Despite this increase, total spending was 5.3% lower than a year ago, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates.  According to the latest U.S. Census Construction Spending data, single-family construction spending edged up 0.1% in June, in line with the slight improvement reflected in the July NAHB/Wells Fargo Housing Market Index (HMI). Compared to a year ago, single-family construction spending decreased by 2.1%. Improvement spending (remodeling) was up 0.1% for the month but remained 7.6% lower than in June 2024. Meanwhile, multifamily construction spending slipped 0.4% in June, continuing the downward trend that began in mid-2023. Compared to a year earlier, multifamily spending was down 9.4%.   The NAHB construction spending index is shown in the graph below. The index illustrates how   spending on single-family construction has slowed since early 2024 under the pressure of elevated interest rates and concerns over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in July 2023. Improvement spending has also been weakening since the beginning of 2025. Spending on private nonresidential construction was down 3.7% over a year ago. The annual private nonresidential spending decrease was primarily driven by a $16 billion drop in commercial construction spending, followed by a $12.2 billion decrease in commercial construction spending.   Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

June Private Residential Construction Spending Edges Higher 2025-09-02T11:15:45-05:00
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