Real estate data indicates that residential construction spending edged higher in March from the previous month, while surging on an annual basis.
According to a report from the Department of Commerce, residential construction spending increased 0.7 percent from February to an annual rate of $253.5 billion, while rising 6.5 percent from an annual spending rate of $235.8 billion in March 2011.
Specifically, it was found that a rise in private spending significantly added to to the overall increase. The report noted that spending in this sector spiked 7.4 percent to a rate of $244.1 billion. Specifically, a surge of 23.3 percent in new multifamily projects is believed to have contributed to this increase.
Meanwhile, spending on public housing projects also increased, but at a more modest rate. Public housing construction spending inched 1.4 percent higher from the previous month to an annual rate of $7.1 billion. However, this was 17 percent lower than the rate recorded in March 2011.
With housing affordability near an all-time high, and the market entering its peak season for activity, these investments in residential construction could net healthy returns for real estate investors in the coming months.