Residential construction spending gains ground in March

Real estate data indicates that residential construction spending edged higher in March from the previous month, while surging on an annual basis.

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.



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