Miami

Miami’s skyline has quickly become one of the largest and tallest in the country.

The area has been building high-rise condos, hotels, and offices at a breakneck pace, leaving contractors scrambling to keep up. We expect this trend to continue well into the 2020s. Cost escalation here is higher than in other parts of the country, and supply-chain issues have increased the cost of a typical project by around 20%. This caused contractors to buy materials earlier than they normally would, which has in turn caused more of a project’s cost to be paid upfront.

Florida enjoys a robust residential real estate market and has been involved in several high-profile infrastructure projects. It is also conversely one of the most vulnerable markets to hurricanes. As the climate warms, these storms are becoming more frequent and more violent – prompting a serious need for stronger homes that can withstand them. To address this issue, building codes have been updated statewide to require new construction to meet ever-stricter wind-loading standards. This currently only applies to new construction – there is no retrofit law in place like the seismic ordinances in Los Angeles. Voluntary renovations, however, must adhere to these codes. As such, residential improvements make up an outsized share of the residential market. We expect this to continue well into the 2020s and beyond.

* Other structures include religious buildings, amusement, government communications, and public recreation projects.