South Florida Home Construction Market Will Continue to Grow in 2020

Two Men Working on a Construction Project

South Florida home development was strong in 2019 and the number of custom-built homes popping up in the area is expected to rise in 2020. The rate of home building was up throughout the year, particularly in the South. According to a study by Apartment Guide, 51.9% of all building permits issued in America this year were for Southern residences.1

In the first of half of 2019 alone, the South saw the highest number of new homes authorized, totaling more than 400,000.While metropolitan areas in Texas were unsurprisingly among the top new construction boomtowns, multiple Florida areas made the top 20 list.2

  • Tampa/St. Petersburg/Clearwater – 13,336 building permits issued
  • Orlando/Kissimmee/Sanford – 13,203 building permits issued
  • Miami/Fort Lauderdale/Pompano Beach – 12,569 building permits issued
  • Jacksonville – 9,502 building permits issued

The New Home Market in South Florida

While the condominium market in Miami has taken a hit in recent years,3 the area’s real estate market remains hot. People from other states and countries are looking to make property investments in sunny South Florida’s high-end neighborhoods. Buyers from high-taxed states are significant investors in South Florida real estate.

“We expect to continue to see high-taxed state residents migrate down to South Florida in 2020, such as Northeast residents, despite there being no significant changes in the market. Any slowdown we see from these buyers is simply a reflection of the overall state of the U.S. real estate market. Buyers are sitting on the sidelines waiting to sell in order to relocate and invest down South. There is still a big demand to be in South Florida.” – Jim Cohen, Fontainebleau Development President 4

Part of South Florida’s hot real estate market in 2020 will be represented by custom-built luxury residences. There are numerous factors supporting the custom home construction market in South Florida, one of which is a strong economy.

  • High Luxury Home Values – The strong economy will maintain the value of luxury homes. While the 2008-2010 recession saw many choosing to only own a primary residence, the economy’s steady rise in recent years has opened up opportunities for secondary residences and investment properties. As luxury home buyers seek out more sustainable and eco-conscious projects, the market and demand for South Florida custom home builders will continue to grow.

At HART Homes, our Fort Lauderdale home builders and Miami home builders build beautiful, luxury homes. Our contemporary home builders are familiar with creating residences in all South Florida’s most popular styles, from Key West style homes all the way to French Countryside style homes.

Contact us to schedule a consultation with our expert team today. Take the first steps toward your dream home!

 

Sources

  1. Apartment Guide – New Home Construction Across the Country
  2. Brenda Richardson, Forbes – The South And West Lead The Way In Housing Construction
  3. Mike Seemuth, Bisnow – As Miami Condo Market Cools, Developers Move North, And To Smaller Projects
  4. Brenda Richardson, Forbes – Real Estate And Architecture Year In Review And A Preview of 2020
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