South Florida construction starts post year-over-year declines in March

Construction is down 18% year-over-year to $2.63B

TRD MIAMI /
Apr.April 28, 2017 10:30 AM

Construction cranes

Construction spending was down in South Florida during March and on a year-to-date basis, according to the latest Dodge Data & Analytics report. 

So far this year, overall construction starts have declined 18 percent to $2.63 billion from $3.21 billion compared to the previous year. While nonresidential starts were up 16 percent to $1.36 billion from $1.18 billion, residential starts declined by 38 percent to $1.27 billion – from more than $2 billion for the first three months of 2016.

March 2017 saw year-over-year declines in both sectors. In January and February, commercial construction increased compared to the previous year, but in March, it fell by 3 percent to $647 million, from nearly $679 million in March of last year. And residential construction dropped 39 percent last month, to $530 million from $867 million, according to Dodge Data.

At the current pace, construction spending could post an overall decline in 2017. Last year, construction starts in South Florida totaled $10.9 billion, marking a 3 percent increase from the previous year.

Construction financing, especially for condo and hotel projects, is difficult to come by at this stage in the cycle. But a new bipartisan House bill wants to overhaul an Obama-era financial regulation and make it easier for banks to fund development projects. Currently, developers who want to secure a construction loan from a bank need to contribute at least 15 percent of a project’s value in cash.

The bill, co-sponsored by Reps. Robert Pittenger (R-NC) and David Scott (D-GA), would allow developers to count a property’s appraised value – not the cash invested – against the 15-percent threshold, plus it would allow developers to withdraw funds from the project if the property’s value appreciates, as long as the threshold is met, among other provisions.


Related Articles

arrow_forward_ios
Miami beach (Credit: iStock)

Hurricane Dorian spared South Florida but will still cost developers and contractors

A satellite image of Hurricane Dorian (Credit: Getty Images, iStock)

As Hurricane Dorian barrels toward South Florida, developers and builders prepare

State report finds open gas valve fueled building explosion at Plantation shopping center

Bayside Marketplace is planning another high-rise entertainment venue with a view

Construction of downtown Hollywood high-rise may start soon

Jeffrey Epstein commits suicide by hanging himself in his Manhattan jail cell

Miami developer Dan Kodsi plans large St. Petersburg project that could cost $2B

South Florida firm buys Sunrise apartment complex for $20.2M

arrow_forward_ios