South Florida construction starts fell slightly in August on a year-over-year basis.
Total building activity declined 7 percent to $703 million, according to Dodge Data & Analytics. Residential construction starts plunged 20 percent to $327.8 million, while commercial construction increased 10 percent to 375.2 million in August, compared to August 2017.
On a year-to-date basis, construction starts rose 11 percent to $8.64 billion, due to a continuous boost in residential starts. Non-residential new construction contracts fell 3 percent to $3.8 billion, while residential starts jumped 25 percent to nearly $4.8 billion, up from $3.8 billion during the same period last year. In July, commercial construction fell 5 percent to $3.4 billion, while residential starts jumped 32 percent to nearly $4.5 billion.
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 country.