Florida Construction and Florida Real Estate: How Good or Bad is it in 2012? Studies Are In.
Florida's construction industry gives lots of people jobs as well as providing all of us with new roads, homes, stores, schools, and such. If the construction industry is hurting, then we're all hurting in the short run and the long term.
Bad News for Florida's Construction Industry
So, the latest information from the Associated General Contractors of America is something that those in the know will consider, and the AGCA is reporting that construction employment in the State of Florida hit a record low -- the lowest it's been since 1990.
AGCA reports that Florida construction jobs dropped 7.3% from 2011 to 2012 and merited the number one spot in the country for the state with most lost construction jobs during the time period.
However, things may not be as dismal as pondering these construction numbers might lead you to believe.
Good News for Florida Real Estate Market
Other studies are being released this month, and from the University of Florida there comes the UF Commercial Real Estate Sentiment Index, which brings good news for the Florida real estate industry. According to the University of Florida research, the state's real estate market is doing better than it's been doing in the past 5 years.
Here, the Kelley A. Bergstrom Center for Real Estate Studies at UF’s Warrington College points to things like more lending opportunities, as well as an upswing in land development of both condo projects and single family home communities. Employment numbers looked better, too, as did the occupancy rates for Florida office buildings.
So, what to expect?
From the UF Report, the prediction for Florida is given as follows:
"Overall the future is looking brighter for Florida real estate, however uncertainty remains. Expect a continued slow and sometimes sluggish recovery until after the presidential elections in November."
Things do appear better than they have been in the past: we're seeing positive movement and industry insiders in Florida commercial real estate development are cautiously optimistic. Do the construction numbers give pause? Perhaps.
However, construction is happening here in Florida -- we've got really low construction costs right now. That's a good thing.
Florida will return to a healthy and vibrant economy. We know this. We'll get there.