(ARLINGTON, VA)— Multifamily construction spending is topping single-family housing construction in the new year.
The Associated General Contractors of America says spending on residential construction for multifamily units is up 30 percent year over year, and is increasing by 2.6 percent over February.
Ken Simonson, the association’s chief economist, says he believes trends in multifamily and sunny days may have led to the rally in construction spending.
“There were solid gains for both the month and year in apartment, non-residential and highway construction,” Simonson says. “Although favorable weather may have boosted these results, demand for many types of projects remains strong despite worries that the overall economy has slowed.”
Single-family spending fell 0.2 percent from December, but increased 6.6 percent over January 2015’s figures.
Private residential spending was flat, but increased 7.7 percent compared to January 2015.
