On the supply side of the real estate market, new single- and multi-family home production will be well below the demand, says Johnson. “We are having trouble building homes fast enough,” he adds, noting that South Florida needs about 200,000 new units a year, but is only adding about 20,000 annually.
But partnering with builders is a good option for expanding inventory options for buyers, says Lisa Hill, broker-associate, Keller Williams Realty at the Parks, Orlando. “A lot of buyers are thinking about new construction because the inventory of active listings is so low,” she says. “I tell them if they need to buy, they should purchase now, even with higher rates, as they can typically refinance later.”
O’Connor points out there are new residential developments spreading to the “exurbs” of Orlando and Tampa and east of I-75 in Southwest Florida, due to the lower cost of land and the growth in hybrid work. “People can live farther from the central business district or suburban office park if they only need to drive in a couple of times a week,” he says.
Grenville agrees, adding that in his local market in east Pasco County there seems to be new housing development or commercial projects breaking ground daily. “As sales professionals, we must be vigilant in exploring those new communities,” he says. “Those new-construction properties are a viable option for buyers now, and in three to five years when those communities are completed, homeowners will be looking to their trusted neighborhood advisor for guidance when they are looking to move again.”
New-development activity is also strong in the multifamily and hospitality sectors, according to Lorenzo Perez Jr., principal broker, Premier International Properties in Coral Gables. “There are plenty of multifamily projects in the pipeline, although new construction is slowing due to higher financing costs,” he says.
In contrast, there has been an explosion in condo-hotel projects that cater to U.S. and international buyers seeking a Florida vacation residence. “This sector is really on fire,” says Perez, noting that multiple developments are underway along the state’s east coast