Florida’s construction industry expects big changes to occur over the next few years. Experts forecast that specialty trades and building construction will be the two fastest growing market segments. The hard-hit construction industry is expected to see a 3.6% annual growth rate during the next ten years, faster than any other field. The number of bay area housing starts in the second quarter of 2012 was up 24% from a year ago and closings were up nearly 66%.
Though the Florida housing market is expected to see a 25% increase within the next few years, it will not reach the peak levels it saw in 2006. This increase means that by 2014, we are expected to see housing starts ranging from 6,000 to 7,000 per year, up from the 4,000 start low. Several factors play a role in this predicted increase in the housing market and construction industry. Factors include the reduction of foreclosure surplus and steadily increasing home prices. Also the decreasing availability of homes has fallen dramatically, falling from a four-month supply to just under a three month supply.
Since 2006, the workforce in Florida has been cut in half, making skeptics out of construction companies and builders hoping for a rebound. This past June, construction jobs statewide hit a low point with only 307,000 available jobs, a shocking 56% decrease from its 2006 peak of 692,000 available jobs. With the market increase, Florida is expected to see a 30% increase in construction jobs from the previous job losses. Regardless of how much the industry increases, it will still be creating tens of thousands of new job opportunities, impacting Florida’s unemployment rate.
For more information, visit:
– John Burnham