Multifamily construction spending ahead of month, year earlier in May

Spending on multifamily property construction during May was ahead of the pace seen both a year and month earlier, according to federal government data.

According to the Census Bureau, the seasonally adjusted annual rate of overall construction spending during the month reached $830 billion – nearly 1 percent above April's rate and 7 percent higher than the year before.

Multifamily spending climbed to $20.5 billion, which was well ahead of the pace from May 2011 of $13.6 billion and April's rate of $19.3 billion.

"Construction is going to be a positive for growth, primarily on the residential side this year, and maybe more on the commercial side in 2013," PNC Financial Services Group senior economist Gus Faucher told Bloomberg.

A boost to the already-strong multifamily market could signal continually steady business for rental property management companies, which should see a spike in the need for their services at properties nationwide.