According to McGraw-Hill Construction reports, the area of South Florida has seen a staggering increase in the number of residential construction projects recently. They’ve shown there is a 97% increase, year over year, in this type of construction and it does not seem to be slowing down at all. This shows that there is still quite a substantial amount of interest in properties in the area, and this bodes well for everyone involved, from the developer and construction companies to the realtors and the buyers. People love South Florida and more and more still want to make the move there.
Fortunately, the increase in the construction projects throughout the region is allowing for this. In Palm Beach County, Broward County, and Miami-Dade County, there were around $400 million in residential contracts in June of 2014 alone. Compare this to the dollar amount from just a year before. It was $203 million in June of 2013. This shows a huge increase in the past year. In addition, the preconstruction condos in Miami and Sunny Isles are on the rise as well.
Even the nonresidential contracts have been on the rise, which is more good news for those who are in this sector of the building community. The monetary figures for these nonresidential contracts a year ago were $158 million. This year, they were close to $324 million. The increase is quite impressive.
Expand this further and look at the first six months of 2014 to get an even better idea of what type of changes and increases the area has seen. During the first six months of 2014, the monetary figure for residential contracts was $2.3 billion. This is an increase of 23% in the span of a year. Over that period, the nonresidential contracts dipped slightly, but they are still going quite strong. Overall, everything in the area seems to be doing quite well.
What is it that is causing this increase? One would think that with all of the properties available that there would not be any more reason for new construction projects in the area. However, one has to stop and consider just how popular the South Florida area really is and how many people want to buy there. In addition, it’s important to remember a couple of different things.
First, those who buy property may not use it as their primary residence. Instead, they might use it as a vacation property, or as an investment rental property. This means that some buyers may actually be buying up several units for this purpose.
Additionally, South Florida is a very popular area because of the beaches and the weather. Many of the properties are close to the water, and some are right on the water. People clamor for these types of properties, and when new construction projects near the water are announced, people pounce on them as soon as they are ready to sell.
These are just some of the reasons for the continued interest and increase in the area. This strength does not seem as though it will be waning anytime soon either.
