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Boston Inventory Suffers From Dwindling Construction Spending

by Alonzo Turner

Construction spending rises and falls throughout the country, helping and hindering markets struggling to refill dwindling inventories.

Residential-construction-spending-2014-mcgraw-hill

Construction spending was up this past October, according to recently released figures from the U.S. Census Bureau. The increases, which amount to a seasonally adjusted annual rate of $971 billion (just above a 1 percent gain), are, as the report suggests, the result of a significant uptick in both private and public spending.

Month-over-month, in October, nearly all construction sectors saw spending growth, as we recently reported.

In the city on the hill, developers felt the sting of decreased construction spending, with residential figures falling 11 percent from September to October and 24 percent year-over-year, pushing 2014’s total spending down to $2.6 billion. In terms of construction, Boston remains one of the nation’s most stressed markets, and the recent disinterest in new residential construction spending can only further exacerbate and already cripplingly low inventory.

To see how our city stacks up, check out our graph below:

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