The latest report looking at Florida land reveals a buoyant market with strong prospects going into the next year. Driven by demand from new residents and a booming economy, residential land in the Sunshine State is highly sought-after. Particularly in those areas with high job creation levels.
The 2018 edition of the “Lay of the Land Market Report”, compiled annually by Coldwell Banker, has just been published. It makes good reading for anyone who has invested in Florida land recently or plans to do so in the near future.
The report examines the entire spectrum of land from ranch and agricultural to residential and developed lots. And across the board, prospects are very bright.
One of the main factors behind the increase in demand for Florida land comes in the strong state economy. Florida is currently “firing on all cyclinders”, says the report with ever-increasing GDP growth and steady job creation. According to the latest Florida Metro Forecast, the state is on track for 3.7% GDP growth this year and 4.3% next year. Both figures lie 0.7% ahead of the prediction for the US as a whole.
As a result, Florida is one of the most popular states for relocation among Americans. Figures from the Florida Chamber of Commerce, quoted by Florida Realtors, point to 83,524 people moving to Florida between January and the beginning of April this year. This translates to almost 1,000 new residents a day.
Strong real estate market
The booming economy naturally drives the property market and Coldwell Banker report that there’s “elevated activity in all sectors of real estate”. In April, Florida saw its 76th consecutive month of house price rises.
As consequence of high demand, it is not surprising supply levels are dwindling. At the end of Q1, inventory levels for single-family homes stood at just 3.8 months’ supply, despite a rise of 1.1% in the number of listings.
Florida land in demand
Low supply has led to increased interest in development land and according to the report, “demand is high”. Plots in areas with easy access to job opportunities are particularly sought-after and experiencing high price rises.
The report states that “values for land that is undeveloped but has residential use are on the rise”. It estimates that the average price per acre went up by around 19% in 2017. “The Florida land market is strong as our state continues to be a great place to own land,” says the Executive Summary.
Moving forward, Florida land can expect more of the same as the report concludes that “the market to find and develop land for new residential communities will continue to be strong”. In short, “owning land in the path of growth will prove to be a great investment”.
(Source: Coldwell Banker, Florida Realtors)