According to a recent University of Florida report, 450,000 people moved to Florida between 2021-2022. Other sources say that almost 1,000 people move to the state every day. All these people need places to live, but the state’s construction industry has struggled to keep up with demand.
According to the University of Florida report, the state built 125,000 single family homes in 2022 — a number not seen since the 2008 housing market crash. Still, this supply isn’t enough to meet demand.
Affordable housing
The demand is particularly high in the area of affordable housing. For builders, the profit margins for affordable housing projects are usually lower than they are at the higher end of the market, so they have less incentive to build these homes, even though the demand is high. At the same time, the high demand has contributed to rising rents, which put further strain on people who are unable to own their own homes.
Lawmakers have tried to improve the situation. Last year, the legislature passed the Live Local Act, which puts $711 million into programs for affordable housing. Among other incentives, the law provides funding and tax breaks for businesses that invest in affordable housing projects.
According to news reports, one project currently in the works in Boca Raton will take advantage of the Live Local Act when it constructs 2,500 new units, with 10-15% reserved for affordable housing. Developers said these will most likely be constructed as apartments. However, the law provides incentives for single-family homes as well.
In many ways, Florida’s construction industry is booming right now, but the Live Local Act could help with an underserved part of the market.
