NAHB analysis of Census construction spending data found that on a 3-month moving average basis, from January 2014, single-family construction spending increased 11.4% and multifamily construction spending increased 28.9%. The seasonally adjusted annual spending for single-family construction was $204.9 billion and $48.9 billion for multifamily construction.
Single-family and multifamily construction spending both experienced monthly increases over December estimates. Single-family spending increased 0.6% month-over-month. Multifamily spending increased 1.9% month-over-month.
Increased construction spending is a reflection of improving market conditions. Builder sentiment in the multifamily market remains positive as rents remain high and vacancy rates low. Builder sentiment in the single-family market is also positive as new home sales increase and the labor market improves.