USA Average House Price, Construction Cost Index, Home Sales and Total Construction Spending – Monthly Report January to June 2023

USA Average House Price, Construction Cost Index, Home Sales and Total Construction Spending – Monthly Report January to June 2023

Newly Built Mansion in Los Angeles, California on 10979 Chalon Rd, CA 90077 – 12 Bedrooms and 24 Baths with 14 Attached Garages on Gross Floor Area 32,000 sqft – Built in 2018 – Price $65 million

We bring you cost updates, trends and data for the 1^st and 2^nd quarter of 2023 in Building, Construction, Housing and Real Estate.

House Price Index USA

The FHFA House Price Index (HPI) is published by the Federal Housing Finance Agency (FHFA) every month. It measures changes in the price of single family homes in the United States. Statistical house price data is obtained from more than 400 cities and 50 states in the USA.

The House Price Index increased steadily from 392.4 in January to 404.09 in July 2023 by a small single-digit percentage every month, which is a 2.98% increase over 6 months.

S&P/Case-Shiller National Home Price Index USA

The independent house price index by S&P/Case-Shiller rose steadily from 294.32 in January to 305.15 in June by single-digit percentages, which is a 3.68% increase over 4 months.

Number of Homes Sold Per Month in the USA

According to the NAR (National Association of Realtors), in the first half of 2023, a total of 4 million homes were sold in January, 4.55 million were sold in February, 4.43 million were sold in March, 4.29 million were sold in April, 4.3 million were sold in May and 4.16 million were sold in June.

According to the government source CensusDotGov, the number of newly built homes in the first half of 2023 was 67,000 in January, 69,000 in February, 70,000 in March, 71,000 in April, 68,000 in May and 72,000 in June.

Monthly Median House Value in the USA

According to the real estate agency Redfin, the median price of a house in the first half of 2023 was $383,000 in January, $387,000 in February, $400,000 in March, $408,000 in April, $418,000 in May and $426,000 in June.

The NAR have their own figures. The NAR Median Sales Price of Existing Homes was $361,200 in January, $363,300 in February, $375,400 in March, $385,900 in April, $396,400 in May and $410,200 in June. The quarterly figures were $371,000 in March and $$402,600 in June.

According to FRED Economic Data, the quarterly Average Sales Price of a House in the USA was $505,300 in March and $495,100 in June.

Construction Cost Index in the USA

The construction cost index measures monthly price fluctuations of building materials and labour.

Producer Price Index by Commodity: Construction Materials, Not Seasonally Adjusted – US Bureau of Labor Statistics

The Producer Price Index (PPI) for Construction Materials in the first half of 2023 was 327.34 in January, 330.53 in February, 331.73 in March, 333.53 in April, 337.94 in May and 337.81 in June. The index increased gradually each month by small one-digit percentages, to register an overall 3.2% increase over 5 months.

Producer Price Index by Commodity: Final Demand Construction, Seasonally Adjusted – US Bureau of Labor Statistics

The Producer Price Index (PPI) for Final Demand Construction in the first half of 2023 was 176.53 in January, 176.58 in February, 176.80 in March, 176.36 in April, 176.60 in May and 170.60 in June. The index varied  by small decimal-digits, to register an overall 0.04% increase over 5 months, which can be described as a stable rate. The index remained relatively stable from January to May, until it dropped by single-digits in the month of June, from 176.60 to 170.60.

Dow Jones US Construction & Materials Index (Monthend Values)

The Dow Jones US Construction & Materials Index was quoted on month-ends in the first half of 2023, from 1189.25 in January to 1171.56 in February, 1149.50 in March, 1163.11 in April, 1174.53 in May, 1345.90 in June and 1400.70 in July. The index remained relatively stable in the first 5 months, varying by double-digits, falling from 1189.25 in January to 1149.50 in March, and then rising to 1163.11 and 1174.53 in April and May respectively. The month of June registered the highest increase of 14.60% from the previous month to 1345.90 in triple-digits. The DJ index increased to 1400.70 on the month-end of July. On the overall, the DJ index increased by 17.78% over the first half of the year to 29 July.

Dow Jones US Home Construction Index (Monthend Values)

The Dow Jones US Home Construction  Index was quoted on month-ends in the first half of 2023, from 1465.56 in January to 1475.01 in February, 1566.16 in March, 1715.05 in April, 1654.77 in May, 1929.53 in June and 1998.33 in July. The index rose steadily from 1465.56 in January to 1715.05 in April. From there on, it dropped to 1654.77 in May and then increased to 1929.53 and 1998.33 in June and July respectively. On the overall, the DJ index increased by 36.35% over 5 months.

Constant Quality (Laspeyres) Price Index of New Single‐Family Houses Under Construction

The Constant Quality Laspeyres Price Index is measured by CensusDotGov for new single-family homes under construction in the USA. The CPI (Base Year 2005) in the first half of 2023 was 188.6 in January, 186 in February, 184.9 in March, 183.7 in April, 183 in May and 181.7 in June. The index exhibited a downward curve over the six-month period, steadily dropping by one-digits every month, from 188.6 to 181.7, which represents a (-3.67%) decrease from January to June. We also have the quarterly indices for new single-family homes, which are 185.6 and 182.7 in March and June respectively.

Price Deflator (Fisher) Index of New Single‐Family Houses Under Construction

The Price Deflator (Fisher) Index is measured by CensusDotGov for new single-family homes under construction in the USA. The CPI (Base Year 2005) in the first half of 2023 was 189.7 in January, 188.4 in February, 187.9 in March, 187 in April and May respectively, and 186.2 in June. The index exhibited a downward curve over the six-month period, steadily dropping by one-digits every month, from 189.7 to 186.2, which represents a (-1.85%) decrease from January to June. The quarterly indices for new single-family homes ending March and June are 205.8 and 206.8 respectively.

Dow Jones Select Home Construction Index USA

This is not a construction cost index, but a stock trading index that measures the performance of equity in US companies listed in the home builder stock market. The Dow Jones Home Builder Stock Index in the first half of 2023 was 11,886 in January, 12,084 in February, 12,572 in March, 13,551 in April, 13,257 in May, 15,136 in June and 15,876 in July. The stock index exhibited an upward curve over the six-month period, increasing sharply from 11,886 in January to 13,551 in April, before dipping to 13,257 in May and then rising sharply to 15,136 in June. The upward trend continued to 15,876 in July. On the overall, this was a percentage increase of 27.34% over six months.

Mortenson Quarterly Index USA

The Mortenson Quarterly Construction Index is prepared by MA Mortenson Co, an American company that specializes in construction, engineering, project management and property development. The Mortenson CCI was 179.7 in the first quarter of 2023.

Turner  International Quarterly Index USA

Turner International is the biggest multinational building contractor in the USA with multiple projects in various sectors in the USA, Asia and Middle East. Their market building cost index is known as the TBCI. The TBCI in the US market was 1349 in the first quarter of 2023.

Newly Built Mansion in Los Angeles, California on 10979 Chalon Rd, CA 90077 – 12 Bedrooms and 24 Baths with 14 Attached Garages on Gross Floor Area 32,000 sqft – Built in 2018 – Price $65 million

Monthly Construction Spending and Number of Newly-Built Units USA

Total Valuation All Construction Sectors, Seasonally Adjusted Annual Rate – US Census Bureau

According to the US Census Bureau, the monthly volume of construction projects in the first half of 2023 was $1,882,199 in January, $1,889,562 in February, $1,901,401 in March, $1,907,837 in April, $1,929,610 in May and $1,938,357 in June. This represents an upward curve over six-months with volumes increasing steadily each month in double-digits from $1,882,199 in January to 1,938,357 in June, which was a percentage increase of 2.98% over six months. Month-to-month percentage increases were 2.2% at the end of January, 0.4% at the end of February, 0.6% at the end of March, 0.3% at the end of April, 1.1% at the end of May and 0.5% at the end of June.

Total Units – New Privately-Owned Housing Units Under Construction: Seasonally Adjusted – US Department of Housing and Urban Development (HUD)

According to the US HUD, the number of new privately-owned housing units under construction in the first half of 2023 was 1.695 million units in January, 1.686 million units in February, 1.68 million units in March, April and May. June registered 1.682 million units. This represents relatively stable volumes over the six-month period slanting towards a decrease which began with 1.695 million units in January and ended with 1.682 million units in the month of June, resulting in a (-0.77%) decrease over six months.

Total Monthly Valuation: Non-Residential Construction in the United States – US Census Bureau

According to the US Census Bureau, the monthly volume of non-residential construction projects in the first half of 2023 was $1,016,421 in January, $1,032,350 in February, $1,044,454 in March, $1,073,124 in April, $1,070,864 in May and $1,071,949 in June. This represents an upward curve over six-months with volumes increasing steadily from $1,016,421 in January to 1,073,124 in April, and then stabilizing in May and June at $1,070,864 and $1,071,949 respectively. Month-to-month percentage increases were 4% at the end of January, 1.6% at the end of February, 1.2% at the end of March, 2.7% at the end of April, -0.2% at the end of May and 0.1% at the end of June. The overall percentage increase was 5.46% over six months.

Total Valuation: Residential Construction in the United States – Percent Change from Preceding Period – U.S. Census Bureau

Month-to-month percentage changes in residential construction spending in the first half of 2023 was 0.3% at the end of January, -1.0% at the end of February, 0% at the end of March, -2.6% at the end of April, 2.9% at the end of May and 0.9% at the end of June.

Total Units: New Privately-Owned Housing Units Under Construction: Single-Family Units – Seasonally Adjusted – US HUD Census

According to the US HUD, the number of new privately-owned housing units under construction (single-family units) in the first half of 2023 was 747,000 units in January, 727,000 units in February, 708,000 units in March, 697,000 units in April, 694,000 units in May and 688,000 units in June. This depicts a steadily declining curve over the six-month period which began with 747,000 units in January and ended with 688,000 units in the month of June, resulting in a (-7.9%) decrease over six months.

Total Units: New Privately-Owned Housing Units Under Construction: Units in Buildings with 5 Units or More – US HUD Census

According to the US HUD, the number of new privately-owned housing units under construction (Multi-family units) in the first half of 2023 was 932,000 units in January, 943,000 units in February, 955,000 units in March, 966,000 units in April, 970,000 units in May and 977,000 units in June. This represents an upward curve with monthly volumes increasing steadily by 2-digits over the six-month period which began in January with 932,000 units and ended in June with 977,000 units, resulting in a (4.83%) increase over six months.

Total Monthly Valuation: Commercial Construction in the United States – US Census Bureau

According to the US Census Bureau, the monthly volume of commercial construction projects in the first half of 2023 was $126.925 billion in January, $127.585 billion in February, $127.474 billion in March, $128.809 billion in April, $125.941 billion in May and $126.007 billion in June. Figures remained relatively stable over six-months, rising and falling by single digits and then levelling out. Month-to-month percentage changes  were -3.4% at the end of January, 0.5% at the end of February, -0.1% at the end of March, 1% at the end of April, -2.2% at the end of May and 0.1% at the end of June. The overall percentage change in volumes was -0.72% over six months.