Real Estate Construction Spending Reaches $1.21 Trillion!

The annual pace of construction spending topped $1 trillion for the 23rd consecutive month in May 2006, rising 6 percent to a seasonally adjusted annual rate of $1.21 trillion, according to a recent report by the U.S. Census Bureau.

Construction spending totaled $457.4 billion during the first five months of 2006, up 8.6 percent over construction spending during the same period in 2005. The annual pace of total construction spending has remained above $1 trillion since July 2004.

During May 2006, residential construction spending increased 2.5 percent over the previous year to a rate of $660.1 billion, while the value of nonresidential construction activity rose 10.7 percent to a rate of $546.1 billion, according to the report.

**Taken from the California Association of Realtors Bulletin, dated July 6, 2006.