South Florida construction spending takes dive in August
Spending on construction contracts in South Florida took a steep dive in August, according to a new report.
And the cut may be deep enough to jeopardize the industry’s chances of topping 2015.
According to construction research firm Dodge Data & Analytics, $725.87 million worth of construction contracts was signed in South Florida during August.
That sum is 22 percent smaller than it was in August 2015, and brings 2016’s year-to-date spending to $7.24 billion — $12 million behind last year’s total.
Up until August, the growth of South Florida’s construction industry in 2016 had slowly been outpacing the previous year in terms of contracts started. The region had ranked No. 2 for construction spending in the nation by the end of 2015.
Breaking those numbers down further, both residential and nonresidential contracts were down significantly last month. The report shows residential construction hit $570.96 million in August, down 20 percent year-over-year. Similarly, nonresidential — everything from hotels to government buildings — reached $154.9 million, marking a 20 percent dip over the same time period.
Miami mega-developer Jorge Perez recently cited ballooning construction costs as one of the leading reasons why residential development in South Florida is starting to slow. — Sean Stewart-Muniz