Value of new private construction put in place
Valued at around 900 billion U.S. dollars in 2016, private sector construction spending continued its positive trend from 2010, when the value of new private construction put in place came to a little over 500 billion U.S. dollars. The sector can be divided into non-residential and residential construction. Non-residential construction was valued at around 420 billion U.S. dollars in 2016. In the same year, the value of new private residential buildings put in place came to around 457 billion U.S. dollars, the highest value since the 2008 subprime mortgage crisis shocked the U.S. housing market. In light of historically low mortgage rates - the 15-year fixed-rate dropped to about three percent in 2017 — the US housing market seems to be on the path to recovery throughout the nation.
The increase in value of new private construction put in place also translated into higher property prices, which were back to pre-crisis levels by 2012. In addition, the national Case-Shiller Home Price Index grew from around 128 points in 2011 to about 186 points in 2016. However, the positive signs are more obvious in some parts of the country than others. While foreclosure filings are down in Seattle, foreclosure activity remains high in Massachusetts, Vermont and New Jersey.