South Florida in 2017 was a tale of two sectors when it came to new commercial and residential construction.
On the commercial side, developers were putting shovels in the ground at a rapid pace, with $5.7 billion in new construction. That amounted to a 27-percent increase from 2016, according to Dodge Data & Analytics’ year end report. The commercial sector, including multifamily and industrial, is thriving as some of the region’s biggest general contractors shift their focus to building properties like warehouses, seaport and airport facilities, and apartment buildings.
On the residential side it was a different story, due in large part to South Florida’s condo market slowdown.
Residential construction starts for the year fell 33 percent from 2016, to $5 billion. Major metros in Miami-Dade, Broward and Palm Beach counties all reported fewer home sales year-over-year, according to a recent Douglas Elliman report.
The drop in residential starts pulled down the total in 2017. The $10.7 billion residential and commercial starts for the year trailed 2016, which posted a combined $12 billion, according to Dodge Data.
December was a slow month overall. Residential starts declined 53 percent to $306 million, while commercial construction dropped 20 percent to $253 million.