Real Estate Construction Spending Continues to Rise

The annual pace of construction spending remained above $1 trillion for the 24th consecutive month in July 2006, rising 5.1 percent to a seasonally adjusted annual rate of $1.2 trillion, according to a recent report by the U.S. Census Bureau.

Construction spending totaled $680 billion during the first seven months of 2006, up 8 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 July 2006, residential construction spending declined 2.8 percent compared with one year earlier, standing at a rate of $637 billion, while the value of nonresidential construction activity rose 15.8 percent to a rate of $563 billion, according to the report.

**Taken from The California Association of Realtors Bulletin, dated September 6, 2006.