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Construction Spending Surpasses National Average in Miami

by James McClister

Construction spending rises and falls throughout the country, helping and hindering markets struggling to refill dwindling inventories.

Residential-construction-spending-2014-mcgraw-hill

Construction spending was up this past October, according to recently released figures from the U.S. Census Bureau. The increases, which amount to a seasonally adjusted annual rate of $971 billion (just above a 1 percent gain), are, as the report suggests, the result of a significant uptick in both private and public spending.

Month-over-month, in October, nearly all construction sectors saw spending growth, as we recently reported.

In the magic city, developers benefitted from huge injections of construction spending, increasing 43% from September to October and 37 percent year-over-year, boosting 2014’s total residential spending to over $4.8 billion. Miami’s growth represents some of the heaviest construction spending in the country, and follows the city’s larger trend of healthy market improvements. Still, such huge increases in spending are not necessarily wholly good for the market. Along the coast, builders are already running into land shortages, especially affordable land, and explosive levels of development risks further quickening the pace of exhaustion.

To see how our city stacks up, check out our graph below:

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