After a pause in 2021, Miami’s construction market should continue to rise over the next few years.
The residential sector contributes heavily to this increase, as the pandemic housing boom has only accelerated an active market. New variants of COVID (and ongoing supply chain issues) have increased the cost of a typical project in Miami by about 20%. Despite these rising costs, there is still strong demand for new construction. 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 gentle decline in commercial construction since 2020.
In March, Miami-Dade County officials began construction on what will eventually be North America’s largest cruise terminal. It will cover almost 500,000 square feet and will be able to accommodate up to three mega-ships and move 36,000 passengers in one day. Two berths will be owned directly by MSC Cruises, while the third will be owned by the city of Miami and hopefully add some much-needed revenue to the city budget. It is on track to be completed by the end of next year.