Construction starts in South Florida pushed the pedal a little harder in September, as both residential and commercial sectors saw increases on a year-over-year basis.
According to Dodge Data & Analytics, last month’s total building activity spiked 45 percent, up to more than $1 billion, thanks to a strong boost in residential starts. Compared to the same month last year, residential construction increased 85 percent to $566.2 million. Commercial construction also increased, up 17 percent, to $519.7 million in September.
On a year-to-date basis, construction starts rose 14 percent to $9.7 billion. Non-residential held steady and remained flat at $4.4 billion. However, residential starts increased 30 percent to $5.35 billion, up from $4.1 billion during the same period last year, and already outpacing last year’s total of $5 billion. A strong shift toward multifamily construction is helping uplift spending amid a condo market slowdown.
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 plaguing the country.