New York Construction Report staff writer
U.S. construction spending remained unchanged in November 2024, according to data released by the U.S. Commerce Department’s Census Bureau. The seasonally adjusted annual rate for November was estimated at $2.15 trillion, the same as the revised figure for October. This represents a 3 percent increase compared to November 2023, when construction spending totaled $2.1 trillion.
In the first 11 months of 2024, construction spending reached $1.98 trillion, a 6.5% increase over the same period in 2023. Private construction spending saw modest growth, rising to $1.65 trillion. Within that, residential construction spending edged up to $906.2 billion, while nonresidential construction spending remained virtually unchanged at $744.5 billion.
Public construction spending in November recorded a slight decline, totaling $501.9 billion. Notably, educational construction spending decreased to $107.0 billion, while highway construction saw a small increase to $142.9 billion.
Industry experts note that rising mortgage rates and proposed tariffs on imports could pose challenges for the construction sector in the coming months. Additionally, labor shortages—potentially exacerbated by immigration policies—may further strain the industry. Despite efforts by the Federal Reserve to reduce borrowing costs, President-elect Donald Trump’s proposed tax cuts and tariffs have been linked to an increase in mortgage rates, according to Reuters.
Earlier in December 2024, the Federal Reserve implemented its third consecutive rate cut but revised its 2025 forecast to just two rate reductions, down from an earlier projection of four, citing the ongoing strength of the U.S. economy.
In September 2024, the Census Bureau reported a slight 0.1% increase in construction spending, bringing the seasonally adjusted annual rate to $2.14 trillion. The first nine months of 2024 saw a total of $1.62 trillion in construction spending, marking a 7.3% increase from the same period in 2023.
