Construction data, from housing starts to permits, was largely positive in May.
Privately-owned housing starts in May were up 28.5 percent from last year, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development.
In addition, building permits increased by both monthly and yearly measures, and completions posted strong year-over-year gains.
The specific data breakdown was:
- Permits for privately-owned units were 7.9 percent above April and 25.0 percent above May 2011, and single-family permits were 4.0 percent above April.
- Housing starts were 4.8 percent below April’s rate, but along with the strong yearly increases, single-family starts posted 3.2 percent gains over April.
- Completions has a similar breakdown, with a 10.3 percent decline from April but a 10.1 percent increase from May 2011. Single-family completions, though, were 6.3 percent down from April.
Jeff Morr, the founder/CEO of Majestic Properties in Biscayne Corridor and Master Brokers Forum member, said that after some down years, construction in Miami has really picked up.
“We’re seeing buildings go up after a number of years, so it’s very exciting,” Morr said, specifically mentioning the Brickell House and MyBrickell developments, along with new units in the Biscayne Corridor funded by cash purchases by Argentinian investors.
That latter fact, Morr said, has been the biggest different between current projects and boom-era construction. Rather than seek financing from large banks, developers are counting more on funding from tenants, and with how hot the Miami market has been, that strategy has been working quite well in 2012, as buyers quickly snatch up prospective units in new buildings.