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Homebuilding Leads Rebound In U.S. Construction Spending

by Jeanice Pepper
April 16, 2025
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Homebuilding Leads Rebound In U.S. Construction Spending
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Construction spending rebounded in February, led by a pickup in homebuilding, after a decline in the previous month. The data suggests the residential sector continues to drive construction activity despite elevated borrowing costs and lingering affordability challenges.

The Commerce Department said Tuesday that total construction outlays rose 0.7 percent in February to a seasonally adjusted annual rate of $2.20 trillion. That followed a 0.5 percent decline in January, revised from the prior estimate of a 0.2 percent decline.

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