In this episode, Gary Ralston, Managing Director and Partner at SVN | Saunders Ralston Dantzler Real Estate, speaks on the state's rapid population growth and why it's important for commercial real estate. The headline for today: “Florida is the fastest growing state”.
Population
It was the United States Census Bureau that made the initial announcement stating that “Florida is the fastest growing state for the first time since 1957”. Gary recognizes this growth as a historic milestone in the state’s record books. At the end of 2022, Florida’s population sat at 22,244,823, nine times the population in 1946.
Throughout its progression, Florida has been a consistent top gainer compared to the rest of the nation. Gary frequently utilizes the Census’s population clock which currently places the world population at nearly 8 billion. The United States was a large contributor to this, recognized as the third largest country. China and India far outpaced any other countries in terms of population.
The population clock also accounts for the individual states’ populations. Florida’s population of 22 million currently ranks third behind California’s 39 million and Texas’s 30 million. New York trails not far behind at over 19.5 million.
Population Growth
Between 2010 and 2020, Florida grew by 764 people per day. Over the last year and a half, Florida has grown by 1,142 people a day.
One of the important items to observe is the volume of building permits. There were 213,000 building permits in 2021, turning into structures during 2022. Gary also points out that Texas experienced over double that amount during the same time period, but remember that Texas is almost 50% bigger than Florida in terms of population. This lag in building permits only leaves room for Florida’s continued growth.
Gary also dives into transportation and mean travel times across the United States. He explains how broken linkages occur when someone’s commute time exceeds that of average travel times. Throughout the entire nation, average travel time to work is about 27 minutes with Florida sitting at almost 28 minutes. This is why certain cities like Lakeland and Winter Haven have not been able to grow together as it takes 30 minutes to travel in between.
What Does This Mean For Real Estate?
It’s important to understand population trends and why they’re important. As Gary emphasizes: “Real Estate is Space For People”. More people means more demand for real estate. It’s great to be in Florida. Last year was a huge year of in-migration for the Sunshine State which will place Florida in a market-softening stage of the commercial real estate industry.
Don’t forget to watch Gary’s full breakdown of population and population growth in Episode 4 of “DataBreak with Gary Ralston”.
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Provided Links
US Census Bureau: