Tariffs, natural disasters are driving up construction costs in Florida: report

A new report by BuildFax found that home maintenance construction costs in Florida increased 13 percent in June, year-over-year

TRD MIAMI /
Jul.July 17, 2019 06:00 PM
New homes in Florida (Credit: iStock)

New homes in Florida (Credit: iStock)

This has been a rough year for Florida’s housing market.

A new report by BuildFax found that existing home maintenance construction costs in Florida increased 13 percent in June, on a year-over-year basis.

Buildfax’s CEO Holly Tachovsky said via email that natural disasters could have driven up some of the costs in Florida and made it more difficult to find workers. Nationally, she said tariffs on construction materials like steel and lumber are driving up construction prices.

Rising construction costs have become a major challenge for developers and homebuilders. Federal Reserve Chair Jerome Powell even made this point last week and suggested that Trump’s tariff and immigration policies are making homebuilding too expensive.

Nationally, single-family housing permit authorizations decreased by 2.75 percent in June, year-over-year, according to BuildFax. Meanwhile, existing housing maintenance spending decreased by 0.75 percent year-over-year.

The report did not break down specifics by region within Florida. But the construction concerns could be greatly affecting South Florida, where home prices have risen much faster than income levels. With construction costs in South Florida rising, it could make home buying even more expensive.


Related Articles

arrow_forward_ios
One Ocean

Allegations of shoddy construction pile up at Related’s One Ocean

Daily Digest Miami

Heir to Merck pharma fortune sells Palm Beach estate, Brookdale buys back Sawgrass Park portfolio for $80M: Daily digest

Daily Digest Miami

Ben Carson talks Opportunity Zones, top developers riff on condos vs. rentals: Daily digest

From left: Amir Korangy and Secretary of Housing and Urban Development Dr. Ben Carson

Ben Carson on Opportunity Zones, unity and red and black ants: TRD Miami Showcase & Forum

Arden home community and Stuart Miller

Lennar picks up 50 lots in western Palm Beach County

Lennar's Stuart Miller and a rendering of a Sierra Ranch home

Lennar closes on 89-acre Davie site for single-family home community

Robert Castellano and 150-206 Inlet Way (Credit: Getty Images, Google Maps)

Robert Castellano buys three motels in Palm Beach Shores, plans condo project

Toll Brothers CEO Douglas C. Yearley, Jr. an a rendering of Avenir Community

Homebuilder Toll Brothers adds to portfolio aimed at active adult communities in Palm Beach Gardens

arrow_forward_ios