Categorized | Residential

Construction Spending in the United States Increases

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In what is certainly a positive sign for the United States real estate market, the amount of spending on construction for both residential and commercial projects increased for the third straight month in October. Office buildings and power plants were two of the more popular options for new construction jobs.

The increase in construction was roughly a half percent higher than previously predicted by real estate experts. As such, there is good reason to be optimistic about the improving health of the real estate market.

There was even an increase in the number of new residential housing construction projects. Many analysts had believed that such construction would remain at low levels due to the heightened supply of available properties on the market. However, low interest rates are certainly working out in the favor of construction companies, as more homebuyers are looking to take advantage of those rates by building a new home.

There are those analysts that are not entirely ecstatic about the news of the growth. Because real estate construction only accounts for a small percentage of the gross domestic product, they are quick to point out that, regardless of the size of the increase, there will not be a major improvement to the nation’s overall economy.

Much of the new construction has been in the private sector, as publically funded construction has actually fallen to its lowest level since 2009. However, private construction has seen very strong increases to more than make up for the lack of new public real estate construction.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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