Construction spending across the country rose again in August, and the San Gabriel Valley is beginning to see signs of that shift. The Commerce Department reported national spending climbed 0.2 percent from July and 1.6 percent from August last year. The trend suggests builders may be slowly regaining momentum after months of stalled activity tied to high costs and elevated interest rates.
Private residential spending rose 0.8 percent from July. Year over year, it fell 1.8 percent. Single family construction dropped 1.1 percent from last August. Multifamily construction fell 7.1 percent over the same period. Month to month, the two categories moved in different directions, which reflects mixed conditions for builders and buyers.
Local Builders Watch Market Signals
San Gabriel Valley builders describe cautious interest in new projects. Rising material costs remain a central challenge. Labor shortages continue across Los Angeles County. Contractors in El Monte and Baldwin Park say the slow climb in national spending mirrors what they see with small infill projects and accessory dwelling units.
Temple City and Arcadia planners note more inquiries about permit timelines. Many owners still explore small additions rather than large developments. High borrowing costs limit bigger projects that need stronger financing. The modest uptick in national spending brings a bit of optimism for local firms hoping for steadier demand this winter.
Residential Activity Remains Uneven
New single family projects remain selective across the Valley. Limited land supply in Rosemead and South El Monte restricts the size of new developments. Multifamily proposals face tight margins due to construction prices. Builders note that national spending numbers reflect nominal values, which may rise as costs rise. Some of the gains may not represent stronger output.
Developers in Irwindale and nearby industrial zones say commercial construction interest remains stable. Many companies focus on renovations rather than ground up projects. The national increase in spending offers a data point rather than a full trend for local firms. Many still wait for borrowing conditions to improve.
Community Impact and Outlook
Construction spending affects local jobs, housing supply, and long term planning. When activity slows, families face tighter housing choices and rising rents. A modest national rise over the summer gives some hope that output could stabilize in early 2026. Builders across the San Gabriel Valley continue to press for predictable timelines and lower permitting barriers. Readers can review the national report at www.census.gov.
