South Florida construction starts plummet in February

Commercial real estate starts fell 78% to $190M

Miami /
Mar.March 28, 2019 02:30 PM

Construction in South Florida

South Florida construction starts plummeted for the second straight month.

Total construction starts declined 63 percent on a year-over-year basis in February to $589 million, according to a new report by Dodge Data & Analytics.

Commercial real estate saw the biggest drop, falling 78 percent to $190.1 million, while residential starts declined 43 percent to $399 million.

While monthly housing starts reports can be volatile, February marks the second consecutive month that construction starts fell sharply, which could be a sign of a broader slowdown in South Florida amid a cooling nationwide economy.

In January, total construction starts declined 45 percent to $640.8 million from the previous year.

Rising labor and supply costs have made it more expensive for developers to build new projects, especially new single-family homes.

Nationally, housing starts fell 8.7 percent in February from January, the Commerce Department reported. Along with rising supply costs, experts say that the housing market is resetting after home prices rose to unaffordable levels.

Dodge Data defines non-residential as office, retail, hotels, warehouses, manufacturing, educational, healthcare, religious, government, recreational and other buildings. Residential includes single-family and multifamily housing.


Related Articles

arrow_forward_ios
The Easton Group's Edward Easton and a rendering of the warehouse project
Easton scores $24M construction loan for Hialeah Gardens spec warehouse
Easton scores $24M construction loan for Hialeah Gardens spec warehouse
(iStock)
South Florida resi construction starts soar in March
South Florida resi construction starts soar in March
Domenic Gatto and Banyan Cay Resort and Club (Linkedin, iStock, Banyan Cay)
Developer of Banyan Cay Resort in West Palm faces charge tied to $65M healthcare fraud
Developer of Banyan Cay Resort in West Palm faces charge tied to $65M healthcare fraud
Prestige Companies CEO Marty Caparros Jr. and COO Alexander Ruiz with (from top) 1201 Palm Avenue, 40 West 23 Street and 2290 Palm Avenue (Google Maps)
Prestige scores $21M construction loan for three Hialeah workforce housing complexes
Prestige scores $21M construction loan for three Hialeah workforce housing complexes
Rendering of The Trail multifamily project with Prestige Companies COO Alexander Ruiz and Centennial Bank Southeast Florida Regional President J.C. de Ona
Prestige Companies nabs $12M construction loan for multifamily project on Ludlam Trail
Prestige Companies nabs $12M construction loan for multifamily project on Ludlam Trail
Renderings of Joseph’s Classic Market building, Workspaces at the Press and Shops at the Press. Tricera executives Scott Sherman (left) and Ben Mandell (Storyn, Tricera)
Tricera Capital scores $51M for Palm Beach Post office-retail redevelopment
Tricera Capital scores $51M for Palm Beach Post office-retail redevelopment
Eden Multifamily heads Jay Massirman and Jay Jacobson with Cypress Equity Investments CEO Michael Sorochinsky (rendering courtesy of MSA Architects)
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
South Florida resi construction starts take hit in February (Getty)
South Florida resi construction starts take hit in February
South Florida resi construction starts take hit in February
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...