Residential construction spending trends. Single family has headroom to grow.

Multifamily construction projects are fueling a residential construction spending juggernaut this year, but single-family gains are no slouch either.

National Association of Home Builders economics department analyst Na Zhao bores into Census construction spending data to dissect the residential trends from the broader trajectory of construction industry outlays. Zhao writes:

Annually, the pace of multifamily spending rose 28% from the October 2014 estimate, and spending on single-family construction was 11% higher.

The NAHB-constructed spending index, which is shown in the graph below (the base is January 2000), indicates that recent gains have been driven by the steady increase in multifamily construction spending. The pace of the multifamily spending is gradually slowing.
Continued gains in singe-family residential spending are likely, even as multifamily's pace slows.
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