SoFla construction slows, still booming in August

Construction cranes
Construction cranes

The outpouring of money flowing into South Florida construction contracts slowed down during August, but the region is still seeing a tremendous uptick in activity.

According to a report from Dodge Data & Analytics, a total of $596 million was spent on residential construction contracts last month. That covers both single-family and multifamily construction across Miami-Dade, Broward and Palm Beach counties.

The amount of money spent on residential contracts has grown by 59 percent compared to the same month last year, up from $374 million. July saw even more explosive growth with an 88 percent increase in contracts.

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Non-residential construction, which covers everything from office buildings to government facilities, also grew by 25 percent year-over-year. Roughly $221 million was spent on non-residential contracts during August, up from $177 million last year. This is following a month of declining spending during July, which actually saw a $100 million decrease in construction spending year-over-year.

So far this year, homebuilders and developers have spent a whopping $4.65 billion on residential contracts and $2.3 billion on non-residential contracts. Those numbers have grown 44 percent and 19 percent for residential and non-residential, respectively, compared to the same time period last year.

Though this significant uptick in construction spending could be a sign of more projects coming online in South Florida, it could also be explained by rising construction costs and labor shortages.