Multifamily Housing Continues to be One of Construction Industry’s Top ProspectsJune 3rd, 2014 by Editor
Construction spending has continued to edge up monthly through much of the first half of 2014. Despite uncertainty in sectors such as single-family homes and public construction, one category in particular has helped keep the momentum going: multifamily housing.
Construction industry economists, including the Associated General Contractors (AGC) of America’s chief economist Ken Simonson, have noted multifamily housing as a top prospect for 2014. Simonson has also reported he expects the upturn in the sector to last into 2015.
So far, his forecast appears to be on track.
According to recent analysis of new Census Bureau data by AGC, multifamily construction spending saw a 4.4 percent increase from March to April and has jumped 31 percent from April 2013 to April 2014.
“Demand for apartments appears to be very strong,” says Simonson, while cautioning that there are still “several warning signs about homebuilding.”