The Florida economy experienced an excellent 2015 and all predictions point to a very sunny year over the next 12 months. As this BRIC Group news article reports, economic growth and job creation in tandem with a recovered property market and increased wealth mean residents in Florida will have plenty to celebrate in 2016.
The 2016 Economic Preview published by Florida Taxwatch starts off on a very promising note. “Floridians can look forward to consistent growth in the Florida economy,” begins the report before going on to highlight top performers in the Sunshine State’s economy. And this a long list of economic factors share a common denominator – strong growth, which in many cases outpaces the national rate.
Strong economic growth
Based on the excellent results of the Florida economy during 2015, Florida Taxwatch predicts that the state will grow by 3.1 per cent over the next year. This is a full 0.4 per cent higher than the World Bank forecast for the US in 2016.
But when you examine the Florida counties, certain areas are predicted to achieve considerably higher increases. Bloomberg Business recently compiled a list of the top 18 American cities expected to register the best economic growth this year.
Florida cities occupy half the rankings and furthermore, take the top 4 positions and 6 out of the top 10. In first place and rated as the American city with the highest predicted growth for this year is the Naples-Immokalee-Marco Island metro area where analysts believe the economy will grow by 4.9 per cent. Orlando – already one of the fastest-growing metro areas and a record-breaking Florida holiday destination – is expected to register an increase of 4.1 per cent, over 50 per cent higher than the national rate.
Florida top for jobs
The Florida & Metro Forecast for 2016 believes Florida will create 2.2 per cent more jobs in 2016 while Kiplinger.com aims slightly higher with a prediction of 2.9 per cent. The personal finance portal also ranks Florida as the third best state for job creation in the US after Nevada and Arizona.
While the Florida job market performed well as a whole during 2015 – the state added nearly 250,000 jobs over the 12 months – certain sectors registered exceptionally high gains. This was the case with construction, fired by the increase in new build properties in Florida, where 7.2 per cent more jobs were added. Transportation saw a 3.8 per cent rise and employment in professional and business services went up by 3.6 per cent.
Florida property on the rise
Against a background of strong economic and employment growth in the state it follows that the Florida property market would mirror their performance. Florida Taxwatch reports that the market has more or less returned to normality and highlights the drop in the number of foreclosure filings. They believe this decrease indicates a healthy economic situation within the state.
Florida Realtors figures released for 2015 corroborate these observations. Prices for property in Florida rose for the 49th consecutive month in December with single family homes experiencing a price hike of 11.6 per cent to reach a median price of US$206,500. Florida condo-townhouse properties saw an increase of 5 per cent and their median price stood at US$156,500 at the end of last year. Meanwhile, inventory levels fell – partly due to the fall in the number of foreclosures in Florida – to 4.3 months for single family homes and 5.4 months for condos and townhouses.
Personal wealth and retail sales also on the rise
The general buoyancy of the Florida economy will also be felt in people’s pockets next year. Florida & Metro Forecast predict a 4.9 per cent increase in personal income in 2016. This rise is considerably ahead of most other states in the US. Extra money to spend will logically lend itself to more retail sales and Florida Taxwatch forecasts these to go up by 5.3 per cent.
“This report confirms the excellent state of the Florida economy,” comments Dies Poppeliers, BRIC Group Managing Director. “It also underlines the potential in Florida property investment, particularly from a buy-to-let perspective. The more jobs the state creates, the more homes will be needed and with the shortage of resale properties on the market many Florida residents will be opting for rentals.”
BRIC Group, an investment company specialising in global real estate opportunities, offers US real estate investments including turnkey properties in Florida and Houston, and land plots in Florida. BRIC Group is also developing The Coral resort, in Northeast Brazil, a luxury beachfront resort with land and villa investment opportunities. BRIC Group has been creating wealth for its clients since 1996 and has offices in Brazil, Dubai (consulting office), Hungary, Spain and the US.
Source: Florida Taxwatch