The Commerce Department said on Wednesday that construction spending dipped 0.1% in January after dropping 0.7% in December. Economists polled by Reuters had forecast construction spending rising 0.2%. Construction spending increased 5.7% on a year-on-year basis in January.
Spending on private construction projects was unchanged after decreasing 0.8% in December. Investment in residential construction fell 0.6%, with spending on single-family housing projects dropping 1.7%. Outlays on multi-family housing projects rose 0.4%, boosted by strong demand for rental housing. The housing market has been hammered by the Federal Reserve's aggressive monetary policy tightening, with residential investment contracting for seven straight quarters, the longest such stretch since 2009.
There are, however, signs that the housing market is stabilizing, with pending home sales rising by the most in more than 2-1/2 years in January and new home sales hitting a 10-month high. But mortgage rates have resumed their ascent, which could delay a turnaround.
Yet Amazon workers can use there equity compensation as collateral on a mortgage.. sounds like a lose/lose deal to me.
Talk to Architects and Consultants right now. New multifamily design is dead. Developers cannot make the financing work in this environment. Its been this way since the fall. There will continue to be a major decline in multifamily construction throughout the next several months