Private residential construction spending rose by 1.8 percent between January and February and took a 6.4 percent year-over-year leap. Spending on multifamily residential construction increased two percent for the month and 10.6 percent year-over-year, while single-family spending saw a 1.2 percent rise for the month and a 3.4 percent ascension from a year earlier. In comparison, private nonresidential construction spending declined 0.3 percent for the month, but was 7.5 percent higher year-over-year.
“While the overall market for construction continues to expand, public investments remain down for the year and private nonresidential activity could be much stronger,” said Ken Simonson, the association’s chief economist. “Two factors that are clearly holding back construction demand are relatively high effective tax rates for many businesses and uncertainty about future demand for public infrastructure upgrades.”