Florida’s glistening shores has always attracted an international cadre of real estate investors looking for a safe haven for their financial nest eggs. However, global markets are responding to economic pressures abroad. While Florida is still growing at a healthy pace, the source of growth has shifted from foreigners to U.S. citizens who have migrated from other states to make Florida their new home.
Once dominant destinations like New York and California are losing populations, while Florida is experiencing a population boom. The slowdown in Florida’s foreign investors is attributable to economic and political uncertainty at home. Foreign investment in the U.S. by European countries like Italy and Great Britain is being challenged by exorbitant exchange rates on the U.S. dollar and new U.S. tax regulations on foreign real estate purchases. Additionally, South American countries such as Venezuela and Brazil are in the throes of far-reaching political and social change, further inhibiting investment in the U.S.
Yet, as the rest of the world is facing strong economic headwinds, Florida is experiencing unprecedented growth resulting from a dynamic state-wide economy that is the envy of the rest of the country. In a report published by the Florida Realtors, 2018 saw a 5% drop in foreign real estate investment compared to 2017. In the study, realtors cited the high costs of property and high exchange rates as the most common reasons for the deceleration in foreign investment. On the other hand,The U.S. Census reported a population increase of more than 1 million new residents in the Sunshine state in 2018.
Florida’s increase in population has surpassed New York as the third most populated state in the union. Florida has long enjoyed the reputation of being a great place to retire. However, that stereotype no longer applies to Florida. According to Wendell Cox, a principal of Demographia, a public policy and demographics company, most of Florida’s new population are Millennials in search of plentiful job opportunities and a more laid-back lifestyle. The uptick has resulted in a population windfall for Florida. Formerly a real estate hot spot, Manhattan has experienced a precipitous drop of 12% in condo sales from 2009 to 2017. By contrast, the Miami-Dade real estate market has risen by 2% during the fourth quarter of 2017according to real estate broker EWM. It appears that Florida’s true Fountain of Youth is the dynamic opportunities that are attracting young professionals and families from all over the U.S.