A recent report from the Department of Commerce indicates that residential construction increased at the beginning of 2012 on both a monthly and annual basis.
The report showed residential construction spending increased 1.6 percent in January from the previous month, while rising 5.4 percent from January 2011. This brought the seasonally adjusted residential construction spending rate to $260.6 billion - the highest the rate has been since April 2010.
According to the report, this was also the sixth consecutive month of gains in the sector, as private spending rose 1.8 percent from December and 6.7 percent from a year earlier. A majority of this spending increase went toward the construction of single-family homes, which surged 5.5 percent from January 2011 to $113.9 billion.
Meanwhile, in contrast, public residential construction dipped 27.7 percent to a seasonally adjusted spending rate of $7 billion on an annual basis.
Although private spending significantly outweighed public spending, real estate data from the report found that it was still not enough to return the industry to levels recorded prior to the housing market collapse.