Because it’s hot ... and we don’t just mean the weather!
The Florida multi-family housing market is exploding because everyone is moving here and not – as traditionally thought - just for retirement, a great number of younger families are also relocating to the Sunshine State.
WHY DID SILLING CHOOSE ORLANDO?
Because Orlando is on the rise! Orlando’s strong population and job growth metrics have underpinned a new demand for multi-family properties.
The lure is most likely the reasonable housing prices, outdoor living, space to spread out (for now anyway), tax savings … and of course the sunshine to brighten your day. With average winter temperatures ranging between the 60s and 70s, it’s no wonder this state becomes the envy of the nation during bitter cold, snowy, winter months and especially during the pandemic. And while the summers get a bit toasty and sticky with constant sun and high humidity, we think it’s a pretty good trade-off for not having to endure the icy chill or shoveling snow.
Orlando has moved into second place in terms of large market economic growth within the state and is still gaining traction. Orlando’s primary advantage was once looked upon as a disadvantage, being landlocked and unable to leverage the coastline for development. Today, the city is taking advantage of its central location, emerging as a place of high-tech manufacturing, healthcare and hospitality corporate headquarters, major theme parks, and as large companies like Amazon move in - a distribution hub. The establishment of this strong, multi-faceted economy has encouraged new talent to move to the Orlando market.
According to the CBRE (the world’s largest commercial real estate services and investment firm) “Orlando’s in-migration and growth trajectory are leading to a greater need for housing. The total metro population has grown over 23% in the last decade, with total employment jumping almost 36%.”
This trend has made it a favorable market for developers, contractors and architects as they continue looking for opportunities in Orlando. This, along with the availability of land, relatively low cost of construction and rapidly rising need for housing have made this a key market for investors.
PROS OF MOVING TO THE SUNSHINE STATE
No state income tax - which is a major perk
Housing costs are lower than many parts of the country
World class beaches - wherever you live In FL you’re never more than 60 miles from a beach
Year-round outdoor living – BBQs, hiking, golf, wildlife nature trails, fishing, boating, water sports
Amusement parks with resident perks
Great food and large selection of Micro-Breweries
Culture – a great variety of places to visit - museums, art galleries, historic venues, wildlife parks.
Sports – FL has 9 professional sports teams and a variety of college teams
• 3 NFL Football teams - Tampa Bay Buccaneers (2021 Super Bowl champions)
Miami Dolphins and Jacksonville Jaguars
• 2 NBA Basketball teams - Orlando Magic and Miami Heat
• 2 MLB Baseball teams - Tampa Bay Rays and Miami Marlins
• 2 NHL Ice Hockey teams - Tampa Bay Lightning (2020 Stanley Cup champions)
and Florida Panthers
Floridians are happier people! Did you know that out of the 365 days each year, 200 of them are sunny in Florida? So, don’t forget the sunscreen! The warm and pleasant year-round weather is one of the Sunshine State’s biggest draws, and it’s not hard to see why. Thanks to the warm climate, Florida residents spend more time outside in the sunshine - a proven way to boost both mental and physical health, courtesy of Vitamin D from the sun.
While there are plenty of people who are born and raised in Florida and decided to stay thanks to everything the state has to offer, there are plenty more who come from a myriad of different backgrounds and walks of life, from all around the country and the world to enjoy the state’s substantial beauty.
Roughly 950 people move to Florida every day and the state has seen an unprecedented demand in luxury home and multi-family sales and rentals as people from the Northeast abandon the big cities in search of a healthier lifestyle.
State demographers estimate Florida’s population will surpass 22 million residents as soon as 2022. Forecasts released earlier this year by the DEC (Demographic Estimating Conference) estimate that Florida will grow an average of 330,000 people a year over the next five years.
With 21.3 million people, Florida is the nation’s third most populous state, trailing only California and Texas.
FOCUS IS ON MULTI-FAMILY HOUSING
Apartment and condominium complexes are the most common types of multi-family housing currently in demand, along with townhomes, duplex, triplex and quadruplex units and mixed-use buildings.
Whereas, single-family homes remain the preference for people moving here, there has been a huge increase in demand for spacious, newer, multi-family complexes that have up-scale amenities - balconies, rooftop patios, gyms, clubhouses and private pools.
While a large number of new movers still cited retirement as the prime reason for their move, an increasing number of people are relocating to Florida with something other than retirement in mind. More than 35% of those who recently relocated to the state are households of at least three people, suggesting children still young enough to live at home, and a similar percentage have a head of household younger than 54.
Orlando’s strong population and job growth metrics have definitely underpinned a new demand for multi-family properties.
Silling is ready, willing and able to design your next multi-family or mixed-use project. How may we help you?