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Construction Spending Rises In January

 
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Old 03-19-2019, 05:25 PM   #1
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Construction Spending Rises In January


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Construction Spending Rises in January
Gains in multi-family and nonresidential spending has offset the slump in single-family-home building, according to the Associated General Contractors.

Construction spending increased 1.3% from December to January, with most of the gains coming in either multi-family or nonresidential projects, according to analysis of government data by the Associated General Contractors of America (AGC). The gains in the multi-family and nonresidential sectors offset the continued slump in spending for single-family-home building.
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Old 03-19-2019, 06:03 PM   #2
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Re: Construction Spending Rises In January


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https://www.remodeling.hw.net/busine...s-in-january_o

Construction Spending Rises in January
Gains in multi-family and nonresidential spending has offset the slump in single-family-home building, according to the Associated General Contractors.

Construction spending increased 1.3% from December to January, with most of the gains coming in either multi-family or nonresidential projects, according to analysis of government data by the Associated General Contractors of America (AGC). The gains in the multi-family and nonresidential sectors offset the continued slump in spending for single-family-home building.
What does that increase mean? Is is because everyone did not want to, or could not take out permits because business came to a halt from Thanksgiving until after the first of the year. Or, does it mean that less permits were taken out in December and less permits will be taken out in February. So, there was no realized increase.

I haven't seen a multi-family building project i.e. an apartment building being built for more than 40 years. All I see for multiple residential building is town homes and condos.

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Old 03-19-2019, 06:50 PM   #3
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Re: Construction Spending Rises In January


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What does that increase mean? Is is because everyone did not want to, or could not take out permits because business came to a halt from Thanksgiving until after the first of the year. Or, does it mean that less permits were taken out in December and less permits will be taken out in February. So, there was no realized increase.

I haven't seen a multi-family building project i.e. an apartment building being built for more than 40 years. All I see for multiple residential building is town homes and condos.

We have apartments going up like crazy.
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Old 03-19-2019, 07:17 PM   #4
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Re: Construction Spending Rises In January


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We have apartments going up like crazy.

It has been the trend here to build homes, condos and town homes because an investor can make $50k to several hundred thousand dollars per unit very quickly vs. renting, babysitting, evicting and repairing units while making peanuts. It is very difficult to build your portfolio by building and holding apartments. If you were to build apartments to sell them as a entire apartment building you are still making a mistake because apartments sell for $250k to $500k per unit and you can build a small condo or town home for $250k to $500k (with the land) and sell the units for more than $1 million.
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Old 03-19-2019, 10:36 PM   #5
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Re: Construction Spending Rises In January


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We have apartments going up like crazy.
Here too.
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Old 03-27-2019, 06:23 AM   #6
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Re: Construction Spending Rises In January


Here three for several years I can't believe it's not watering down the value.

February reports were all down I think which feels accurate from what I hear among subs and vendors
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Old 03-27-2019, 09:26 AM   #7
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Re: Construction Spending Rises In January


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The gains in the multi-family and nonresidential sectors offset the continued slump in spending for single-family-home building.
Prepping for the next downturn cycle that will eventually come (2-3 years)...
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Old 03-27-2019, 03:38 PM   #8
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Re: Construction Spending Rises In January


Multi-family has been a consistently much sharper upward ramp compared to single family, going back to the beginning of the recovery.
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Old 03-27-2019, 04:35 PM   #9
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Re: Construction Spending Rises In January


Probably depends on a lot of factors. What the bank is willing to finance, zoning, politics, what generates the most tax revenue, etc

The banks and politicians try to get it down to a science. I think single family has peaked since land costs are so high, it's why the cul-de-sac was so popular you could squeeze an extra dwelling or 2 in limited space....the parking sucked for the buyer but oh well
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Old 03-27-2019, 06:59 PM   #10
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Multi-family has been a consistently much sharper upward ramp compared to single family, going back to the beginning of the recovery.
All those illegals storming the border have to live someplace.

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