New construction spending took another hit in September, according to a new report from Dodge Data & Analytics.
Construction contracts inked last month totaled $519 million, a 5 percent drop from the same month last year. Residential contracts are responsible for the drop, with only $267 million worth of contracts signed for residential projects, 14 percent less than the $310 million in September 2015.
The trend of fewer residential contracts could continue amid weakened demand for new condo construction. Some projects have canceled, paused or delayed construction as a result of the slow market. Financing is also increasingly difficult to get, experts and developers say.
Nonresidential spending, which includes office, retail, hotels, warehouses and other commercial uses, totaled nearly $252 million, a 7 percent increase from the $235 million in September 2015, according to the report.
On a cumulative, year-to-date basis, construction spending is slightly under this year compared to last. So far this year, spending totaled $7.78 billion compared to $7.79 billion in 2015.
In August, spending took a big hit, dropping 22 percent from July.