Need Another Reason to Invest in Florida CRE?
Do you need another reason to invest in Florida commercial real estate? Look at Florida’s population growth between July 2016 and July 2017. During that period, the Sunshine State added 328,000 residents, 33 percent more than California. Population growth is one of the fundamentals for a healthy real estate market and Florida continues to grow as some of the largest states in the USA recede.
For the last seven years, Texas has led the nation in population growth. However, Texas has experienced declines over the last two years, most likely due to instability in petroleum markets., Over the past year, Texas added 400,000 residents, the most of any state according to the July 1, 2017 estimates of the United States Census Bureau as reported in this Dec. 30, 2017 article by NewGeography.com. Florida ranked second in population growth last year, adding over 325,000 residents.
Since 2010, California has added 2.2 million residents, edging out Florida. California’s growth, however, dropped significantly to 240,000 between 2016 and 2017– the smallest number since the late 1990s, according to NewGeography.com. California’s growth in this decade peaked at more than 350,000 in 2014, but has since dropped by nearly one quarter., Florida added 2.1 million residents since 2010 but has led California in each of the last three years.
New York dropped from a gain of over 120,000 in 2011 to only 13,000 in 2017. Illinois has done even more poorly, dropping from a gain of 21,000 in 2011 to a loss of 33,000 in 2017. Illinois has experienced a reduction in growth each year of this decade, according to the article authored by Wendell Cox, principal of Demographia, an international public policy and demographics firm. According to a South Florida Business Journal article about U-Haul truck arrivals, Miami, Kissimmee, Brandon, St. Cloud, Melbourne, Davenport, Boca Raton, Bradenton, Ft. Lauderdale and Panama City Beach were cities that matched the state’s pace of growth.
If you experienced any of the 2017 “bomb cyclone” in the Northeast, there is little doubt why Florida is attractive. Warm weather is a constant sell in real estate and Florida offers an attractive lifestyle change for commercial and residential buyers. I find it also notable that each of the cities mentioned above offer different variations on the Florida lifestyle with transportation options between major cities well supported. No wonder The Sunshine State is still growing!