Florida economy buoyant from in-migration and real estate

Florida’s economic prospects remain strong. Its wider attractions for people and business have encouraged in-migration but also put pressure on housing affordability, particularly in Miami. Tourism remains an important sector, but some metros will benefit from growth in finance, government, and wholesale trade. The Villages and Naples will see strong job growth.

What you will learn:

• Florida remains one of our strongest performing states for medium-term GDP, job, and population growth. Attractive lifestyle factors drive strong in-migration to the Sun Belt from both seniors and graduates alike. The large influx of retirees will make locales such as The Villages strongest for medium-term consumption growth among all US metros.
• Both lifestyle and business factors have led many firms to relocate to Florida, particularly Miami. A start-up friendly culture has also led Florida to be the most popular state for new business registrations. While tech is not as big in Florida as elsewhere, there are signs tech hubs may be emerging in Palm Bay and Miami. Tourism was hit hard by the pandemic, but lost jobs have now been recovered and visitor numbers will resume healthy growth.
• Miami is the least affordable major metro east of the Pacific seaboard. Both in-migration and demand for second homes are putting pressure on house prices, and the real estate sector makes up a relatively large share of the economy. Construction continues apace to meet growing demand. Yet high exposure to hurricanes and flooding have made insurance expensive and forced out some providers.