The number of new construction contracts inked in January was down 8 percent from the same period in 2016, to $629 million down from $684 million.
Despite the overall decline, South Florida saw a huge increase in commercial versus residential construction, according to the latest report from Dodge Data & Analytics. Nonresidential construction starts were up 64 percent last month compared to January 2016, to $316.8 million from $193.4 million. The construction data firm defines nonresidential as office, retail, industrial, health care, and other commercial uses, but includes multifamily in residential.
Residential construction starts took a 36 percent hit in January compared to the same period last year. Last month, South Florida’s contractors inked $311.9 million of residential construction starts, compared to $490.7 million in January 2016.
Overall, construction spending in South Florida totaled $10.9 billion in 2016, marking a 3 percent increase from the previous year. Commercial saw a 4 percent dip while residential was up 7 percent.
January’s figures, which show an uptick in commercial and a decline in residential, also reflect current market conditions. – Katherine Kallergis