Besides the havoc it has already wreaked, the natural disaster may affect migration of the population, which determines the situation in the real estate, business environment, and the entire economy of Florida.
It is still unknown how many people will change their plans to move because of the hurricane. Two aspects need to be taken into account: incoming migration flows from other states and people moving within Florida. From April 1, 2020 to July 1, 2021 (the latest period with available data from the US Census Bureau), Florida was one of the states with the biggest net population growth, which was driven by migration to a large extent. 242,941 people moved to Florida over that time.
Of course people won’t stop coming to Florida even after the recent hurricane, experts from John Burns Real Estate Consulting (JBREC) believe, but the numbers may decrease.
Southwest Florida was one of the most popular destinations for domestic migration within the USA. Over the past 4 years, 20,000 people moved here. Experts expect this population growth to slow down in the nearest future, but the market share of eastern metropolitan areas may increase as the flows shifts towards them. At the same time, a significant part of South Florida is also under the risk of flooding because of heavy downpours and destruction with violent winds.
Hurricane Andrew that brought destruction to Miami in 1992 stimulated a growth in Broward County and western suburbs of Miami itself, which is why experts from JBREC count on a higher demand for residential properties east of I75 highway over the next ten years. There are land plots and buildings available in communities such as Babcock Ranch, Big Cypress, Wellen Park, Lakewood Ranch, and Ave Maria, located farther inland. They will benefit from the population growth in the future.
Investors and developers must take into account Florida’s changing population trends in the short term when they plan for projects and business locations.