People have flocked to South Florida for years because of the beautiful weather, an excellent cultural mix and, of course, the nightlife. But, according to a recent report, there may now be yet another reason for people to be attracted to the South Florida area: economic growth.
For the last several years it has been rare to see the words “economy” and “growth” in the same sentence in a news report. The only thing any of our readers has to do is open up a newspaper to see a dearth of good news on the national economy. National growth is barely incremental, the housing market throughout the country is still stunted and the unemployment rate is stagnant.
Fortunately for South Florida residents, the local area is an exception to the national economic climate. The recent report noted that there was a 3.5 percent increase in economic growth in 2012 for the Miami-Dade County, Broward County and Palm Beach County area, which was the largest increase since 2006. What is powering this growth? – Real estate transactions.
Anyone familiar with previous posts here knows that South Florida real estate is hot. A seller doesn’t have to do too much to see multiple bidders on their property, and condo towers are rising again throughout the tri-county area. But, even as sales prices have risen and inventory has declined, property is still selling relatively quickly. Real estate was the number one factor in the economic growth seen last year, and there hasn’t been any indication that the real estate market is going to cool down anytime soon. That could be good news when the economic growth numbers for 2013 become available.
Source: Miami Herald, “South Florida economy growing at 3.5 percent, thanks to a real-estate surge,” Douglas Hanks, Sept. 18, 2013