The Real Deal Miami

South Florida construction starts fall in July

Commercial construction starts saw the sharpest decrease, down 55% y-o-y
By Amanda Rabines | August 30, 2018 03:30PM

(Credit: Pixabay)

South Florida construction starts fell in July on a year-over-year basis.

Total building activity declined 38 percent to $586 million in July 2018, according to Dodge Data & Analytics. Residential construction starts decreased 17 percent to $354 million. And commercial construction saw the sharpest decrease, down 55 percent to $232 million from $521 million.

On a year-to-date basis through July, construction starts rose 13 percent to $7.95 billion, due to a boost in residential starts. Non-residential new construction contracts fell 5 percent to $3.4 billion, while residential starts jumped 32 percent to nearly $4.5 billion, up from $3.4 billion during the same period last year.

For several months now, residential construction activity has outpaced commercial spending. In June, commercial construction starts plummeted 44 percent to $616 million from $1.1 billion, on a year-over-year basis.

Commercial construction includes office, retail, hotels, warehouses, manufacturing, educational, healthcare, religious, government, recreational, and other buildings, while residential includes single-family and multifamily housing, according to the report.

Construction costs are expected to continue rising across the U.S., thanks in part to President Trump’s plan to tax overseas metals. Developers have already expressed concern over the cost of materials and the construction labor shortage that is plaguing the rest of the country.