With Florida’s real estate development on the rise, many people are moving to Florida in order to enjoy the beautiful weather and be part of the fast-paced real estate market. With the recent economic downturn, this has been one of the few places where the economy has remained strong due to the influx of new residents and businesses. Additionally, with technology like Amazon dominating shopping and small businesses becoming more popular, Miami, Fort Lauderdale, Orlando, and Tampa are some of the fastest-growing cities in the country.
Sales & Construction Trends
As soon as construction loans became available for Florida residents, things really took off. Miami and Fort Lauderdale are some of America’s fastest-growing cities—and growth doesn’t seem to be slowing down anytime soon. From 2007 to 2008, housing prices increased more than 20%—and that was during a period of economic turmoil. Tampa and Orlando are also becoming hotbeds for real estate development.
Building Materials & Costs
Designing and building a home in Florida can be cheaper than you may think. The state has some of the least expensive construction costs in America thanks to its year-round good weather, which limits construction delays and streamlines building schedules. And there are plenty of design resources available online, including free floor plans that can help you get started right away. It’s never been easier to find quality building materials and skilled tradesmen to help you design and build your dream home.
Residential Housing Inventory
Construction loans are vital for developing residential housing, especially in Florida. Although Florida is known for its beautiful coastlines and beaches, there are hundreds of miles of undeveloped land to build everything from condominiums to single-family homes. With new construction comes a lot of money flowing through banks and financial institutions—which means plenty of opportunities for real estate developers looking to secure construction loans with banks and other mortgage providers.
Commercial Property Inventory
Commercial property development financing options are complex, so it’s important to find a loan that works with your business model. A commercial construction loan can help you purchase land or fund building and renovation projects. To secure one of these loans, start by looking for a lender that has both local and national connections. Online lenders like OnDeck Capital have relationships with thousands of banks throughout America, so they’re more likely to match you with a lender that meets your needs.
Where Are We Now?
The real estate development business in Florida is currently experiencing a boom. Developers are taking advantage of recent drops in interest rates to develop commercial and residential projects. The drop in energy prices has caused energy production costs to plummet, and for many developers, it’s still cheaper to build a project rather than flip a house or parcel of land.
Where Will We Go Next?
Florida may be our nation’s third-largest state, but it’s quickly becoming one of its fastest-growing. The Sunshine State has seen a 2 percent increase in population each year for at least 15 years, and every part of Florida is growing: from its big cities like Miami and Tampa to small communities in central Florida.
Why This Matters For You!
There are now more construction loans in Florida than ever before. With all of these people migrating south to work and live, they need homes and places to stay while they find their new home. They also need investment opportunities for those who want to put some of their savings into a project that will grow with time, providing another source of income.
