The past year and a half has meant that home prices in South Florida reached record-breaking heights and are projected to continue rising by a further 6% during 2022. In December 2021, the average price of a single family home in SF was $475,000 – a number which is also expected to grow over time. Due to the rapidly rising interest in land and property development in SF, experts are naming the situation a “land crisis,” which references their estimation that developers have approximately five years left before development becomes impossible in the increasingly overpopulated state.
The Demand For Land
The lack of available land in the sunny state of SF is both an opportunity and a threat to property developers, who are now competing for as much space as possible to build between the Atlantic and the Everglades – which are both being hastily used up for developing retail and residential developments. Because of how little land is available to develop on, engineering professionals need to get inventive about how to go about development.
Population growth is the main reason behind tight land availability. According to the US Census Bureau, the state of Florida ranked second in the US for most residents gained during 2021, with over 211,196 new residents arriving between June 2021 and July 2021 alone. With mass population growth comes many more reasons for land scarcity. The demand for multifamily units rises alongside population growth, with more than 64,000 units either being constructed, delivered, or are currently being planned for development in SF before the end of 2022. E-commerce, third-party logistics, and manufacturers are also partially responsible for the high land demand in SF. Many different industrial projects are being attracted to the area, because of its growing number of consumers and social livelihood.
A Long-Term Solution Sought
Pressure often gives way to creative solutions, which is exactly what Floridian land developers need if they are going to survive the next season. Many industrial developers are now looking to previously unused areas such as lake fills, landfills, and old golf courses as potential grounds for fresh development. As developers seek out such spaces, the demand for high quality landscapers is looking up. Making use of a landscaping or stump grinding service for preparing unused areas is expected to become increasingly popular, and for good reason – these services are essential for getting the job done right.
Building up rather than across is also a potential route for easier land development in upcoming years. Professional developers claim that building two-story residential spaces will become increasingly popular as ground space grows smaller due to industrial and commercial property development.
Onlookers are hoping that rental costs will find stability rather than skyrocket due to crowded development and competition. The last few years have been tough economically, and increased rents are going to be problematic for many people. This is not the time for land developers to be picky – resourcefulness, creativity, and innovation is what will pave the way forward.