The NAHB analyzed Census Construction Spending Data and found that the strong single-family construction spending gains were also helping shore up total private residential construction spending, which grew 0.4 percent in October, following a 0.2 percent decrease in September 2017. That amounts to a seasonally adjusted annual rate of $517.7 billion. Overall, total private residential construction spending was 7.4 percent higher in October than it was a year prior.
NAHB’s construction spending index, seen below, charts changes in single-family construction spending, multi-family construction spending, and home improvement spending since 2000. All three have been trending upwards for most of the decade. For comparison’s sake, in October 2017 remodeling spending was also on the rise, leaping up 1.4 percent. Multifamily construction spending dipped for the month, however, slipping to 1.6 percent—2 percent lower than a year prior.
As highlighted by a November 2017 Migration Report published by Redfin.com, residential construction spending has also been driving increased migration to various cities around the country. According to Redfin’s analysis, the top 10 cities with the highest net inflow include San Diego, California; Sacramento, California; Las Vegas, Nevada; Phoenix, Arizona; Atlanta, Georgia; Boston, Massachusetts; Dallas, Texas; Nashville, Tennessee; Tampa, Florida; and Miami, Florida.
For anyone looking to learn all the ins and outs of the rental side of the single-family equation, be sure to register for the 2018 Single-Family Rental Summit, happening March 19-21, 2018, at the Renaissance Nashville Hotel in Nashville, Tennessee. The Summit will include discussion panels and training sessions led by top subject matter experts and skilled SFR practitioners, offering viable solutions related to property acquisition and management, financing, strategies for small, mid-cap, and large investors, and new developments related to technology and professional services. Learn all the details and register by clicking here.