If the number of new skyscrapers dotting the city’s skyline is any indication, Miami’s construction market should continue to grow well into the 2020s.
A lot of these are new residential developments, which make up a little over half of the market. The commercial sector is a large slice of the market as well, as Miami is a major destination for tourism and leisure travel. North America’s largest cruise terminal is currently under construction here and is set to open early next year.
Supply-chain issues and new variants of COVID-19 have increased the cost of a typical project in Miami by about 20%. Volatility in the market has led some contractors to buy materials earlier than they would have before the pandemic, causing more of a project’s cost to be paid up-front. This trend can help explain the gentile decline in commercial construction since 2020. Despite these costs, there is still strong demand for new construction.