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The U.S Census Bureau of the Department of Commerce announced U.S construction spending in January was estimated at a seasonally adjusted annual rate of $1.14 trillion. A 1.5% increase above the revised December estimate and 10.4% higher than the comparable month in 2015. Residential construction was nearly even at $433.2 billion and nonresidential totals increased 1% to $398.2 billion over December. Private construction spending rose 0.5% to $831.4 billion over December 2015.

The world’s two largest home improvement retailers reported fourth quarter 2015 increases in net earnings.

The Home Depot announced fourth quarter 2015 sales of $21 billion, an increase of 9.5% from the comparable period in 2014. Year-end sales were at $88.5 billion, up 6.4% from 2014 fiscal year. Annual earnings per diluted share in fiscal 2015 were $5.46 compared to $4.71 per diluted share in 2014, a 15.9% increase.

Lowe’s Companies reported net earnings of $11 million for the fourth quarter ending in January 29. Quarterly sales increased to $13.2 billion, a 5.6% increase. Fiscal year net earnings were $2.5 billion and annual net sales increase 5.1% to $59.1 billion.

According to a monthly survey of furniture manufacturers and distributors, U.S furniture factory orders have increased 1% in December 2015 over the same period in 2014.  One-half of participants reported increases in December down slightly from the previous month. Overall in 2015, orders rose 4% over 2014.

The survey reported 47% of the participants had an increase in shipments of 5% over December 2014 increased shipments. Year-to-date shipments were up 6% over 2014.

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According to the Kitchen Cabinet Manufacturers Association (KCMA) cabinet manufactures reported sales totaling $6.5 billion 2015, up 8.5% from 2014. Notably Masco’s cabinet segment sales reached $1.025 billion, an increase of 3% from 2014.

Additionally wood component sales within the RV industry leap 31%. Patrick Industries reported $248.7 million in sales up from $189.6 million during the same period in 2014.

Weyerhaeuser shareholders have approved the merger with Seattle based Plum Creek Timber Company. The pending merger was announced back in November 2015 is expected to be completed in early March.

Proteak MDF plant begins production in Tabasco, Mexico. Headquartered in Mexico City, Mexico, Proteak announced that the new plant’s annual capacity will be 280,000 m³.

Canadian building permits rose 11.3% to $6.9 billion in December. Higher construction intentions for multi-family housing lead the advance in building permits for December. The value of permits issued for multi-family housing rose to $2.3 billion in December, a 39.1% increase following a 33.8% decline in November. Quebec, Ontario and British Columbia lead the reports of higher construction intentions. The value of single-family housing decreased 0.1% from November, remaining at a stable $2.3 billion for the fourth consecutive month.

Overall for 2015 the value of building permits totaled $85.0 billion, unchanged from 2014. Residential building permits were up 4.4% from the previous year to $53.2 billion in 2015. Non-residential sector declined 6.3% from 2014 to $31.8 billion in 2015.

Sales of new single-family housing in December 2015 increased 10.8% to 544,000 over the revised November rates of 491,000 according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. This is a 9.9% increase from the December 2014 estimate of 495,000.

For November 2015, sales of new single-family houses were at a seasonally adjusted annual rate of 490,000 according to the U.S Census Bureau and the Department of Housing and Urban Development. This is a 9.1% increase from November 2014 and 4.3% above the revised October rate of 470,000.

According to the U.S Census Bureau of the Department of Commerce construction spending during November 2015 was at a seasonally adjusted rate of $1,122.5 billion, a 0.4% decrease from the revised October 2015 estimate of $1,127.0 billion and a 10.5% increase from the November 2014 estimate of $1,016.1 billion.

Private construction spending was at a seasonally adjusted rate of $828.2 billion with residential construction at $427.9 billion and nonresidential construction at $400.3 billion.

During the first 11 months of 2015, construction spending within the U.S amounted to $1,011.9 billion which is 10.7% above the same period in 2014.

According to the U.S Census Bureau of the Department of Commerce spending on construction during October 2015 was estimated at a seasonally adjusted annual rate of $1,107.4 billion, a 1% above the revised September estimate of $1,096.6 billion. The October 2015 figure is 13% above the October 2014 estimate of $979.6 billion.

During the first 10 months of this year, construction spending has increased 10.7% ($888.1 billion) from 2014 ($802.3 billion) during the same period. Residential construction is at a seasonally adjusted rate of $399.0 billion in October 2015, a 1% increase from the revised September estimate of $395.5 billion.

Sales of new single-family houses in October 2015 were at a seasonally adjusted annual rate of 495,000, according to the U.S Census Bureau and the Department of Housing and Urban Development. The adjusted rate for October 2015 is 10.7% above the revised September rate of 447,000 and is 4.9% above the October 2014 estimate of 472,000.0

The housing market has continued on an upward trend since the 2008 housing crisis. The National Association of Home Builders (NAHB) is projecting single-family housing starts to increase 11% to 719,000 in 2015 over 2014. In 2016, production is expected to rise 27% to 914,000 new housing starts. The NAHB associates these increases to steady employment and economic growth along with attractive mortgage rates.

“This recovery is all about jobs,” said NAHB Chief Economist David Crowe. “If people can get good jobs that pay decent incomes, the housing market will continue to move forward.”

However there are several factors that are hindering a more vigorous recovery. According to a NAHB survey of its members, 13% of builders reported cost and availability of labor as a significant problem in 2011 and that concern jumped to 61% in 2014. One-fifth of builders shared similar concerns regarding lots in 2001 and the increased dramatically to 61% in 2014. The increase in building material costs also remains a concern at 58% of those surveyed in 2014 compared to 33% in 2011.

The production of multi-family housing unfortunately has not had the same predicted growth as the single-family housing starts. With the production of multi-family units expected to increase 9% to 387,000 units this year but to have a 3% decline to 378,000 units in 2016.

As a whole, the U.S housing market has steadily improved however improvement pace has varied by region. The most successful recoveries are happening in North Dakota, Wyoming, Texas, Montana and Louisana. Other states exhibiting signs of strong employment and housing growth include South Carolina, Utah, Tennessee, Idaho, Oregon and North Carolina. While the improvement for states such as California, Arizona, Nevada, Florida and the industrial Midwest have been more difficult due to excessive price and production spikes during the 2008 crisis.

“We’ve gotten to the point in the recovery where we no longer have problems that came with the housing bust,” said NAHB Senior Economist Robert Denk. “It now is really a matter of housing markets reconnecting to the fundamental drivers, and that is employment.

Source: NAHB