Florida is building faster than the state can handle the growth
Herald-Tribune, The (Sarasota, FL)
Florida once again is heading into a perfect real estate storm.
The physical destruction in Florida from Hurricane Ian will unearth the underlying problems in the Florida real estate market – too many people moving into a state that cannot offer the construction labor, supplies and materials and most importantly, services, needed for the expanding population.
Had the storm hit only the coastal areas, we would be concerned with properties close to the shoreline. But the fact that it traveled across the state, impacting interior communities that may have felt safe, will highlight the same problems in those areas.
The financial impact of the storm will be felt rather quickly in a state that has already been experiencing increases in insurance costs that many residential and commercial property owners have been complaining about for years.
Add the impact of rising interest rates and you have created a market that will eliminate many prospective buyers seeking homeownership. Rental rates will rise again as landlords receive notices of increased insurance costs – and/or cancellation of policies – as insurance companies pass on the cost of the storm damage.
A real concern has been increasing in the medical communities, as doctors and hospitals find it more difficult to hire qualified staff to service the needs of the expanding populations. Nurses and medical service providers have elected to locate to other states that offer higher wages and lower housing costs. Doctors seeking medical offices find the supply of available properties to be limited and costly.
Florida is a state that has a long history of real estate booms and busts created by hurricane disasters. Here we are again, sailing into the perfect storm.
Rebel Cook is a longtime commercial real estate broker at Rebel Cook real estate, Palm Beach Gardens, and President of the Economic Forum of Palm Beach County.