March multifamily residential construction spending had significant gains from one year ago.
National Association of Home Builders analyst Na Zhao offers top line take-aways from the lastest Census Construction Spending data, peeling back the layers of the Bureau's total private residential construction spending figures for March, which increased to a seasonally adjusted annual rate of $435.5 billion, up by 1.6% over February’s revised estimate. On multifamily, per se, Zhao notes:
Multifamily spending continued its strong growth and reached $64.4 billion, exceeding the February high of $61.0 billion. This was a 34.6% increase from the March 2015 estimate.
The long tail of development, and the Spring season probably account for the spike in multifamily building, but it will be interesting to see how markets absorb this next wave of communities into their pipeline of inventory.