Florida’s housing industry has always been at the leading edge of innovation, driven by its unique blend of cultural diversity, environmental challenges, and a booming real estate market. As we step into 2024, this the industry will continue to evolve, and Monta Consulting & Design is equipped to meet the demands of the market. Our unique approach complements trends in the industry, including the implementation of new technologies, sustainable design, and innovative construction methods shaping the future of housing in Florida.
Housing Market Projection
The demand for housing is predicted to remain at a “normal” rate of growth. According to chief economist Dr. Brad O’Conner, Ph.D., Chief Economist, Florida Realtors, “Inventory is increasing, which has helped slow price growth.” Despite facing challenges such as higher mortgage rates, the Florida housing market has yet to exhibit a significant slowdown in 2023. Closed sales of single-family homes have seen a healthy increase of over 6% in September.
This positive trend, coupled with an expanding inventory and resilient condo-townhouse sales, indicates that the market is far from stagnating. Florida’s housing market continues to adapt and attract new residents, offering opportunities in an evolving landscape. According to data collected through Zillow, “The average home value in Florida currently stands at $392,922, which reflects a 0.7% increase over the past year. Additionally, homes in Florida go pending in approximately 22 days, indicating a relatively fast-moving market.” Several spending trends within the industry cause these spikes in prices.
Single Family Forecast
In 2024, it is anticipated that the demand for single-family homes in Florida will continue, driven by factors such as an influx of new residents, a strong economy, and a preference for active living. According to the National Demographic Estimating Conference, “The annual Population growth year is expected to average 300,000 or 817 per day.”
Interestingly, the largest age demographic of those moving to Florida is 35-44. It is the youngest demographic to lead this trend in over a decade. To meet the market demands, there will likely be a focus on incorporating sustainable and energy-efficient features. Additionally, an emphasis on technology and smart homes is expected to be in high demand. Overall, Florida residents’ diverse and evolving needs for space, amenities, and convenience are expected to shape the landscape of single-family home construction.
The multi-family construction sector in Florida was experiencing significant growth, driven by urbanization trends, a rising population, and the demand for more affordable housing options. Looking ahead to 2024, this momentum in multi-family construction will likely persist. With an increasing number of people preferring the convenience and amenities of city living, developers are expected to continue focusing on constructing multi-family residential units, such as condominiums and apartment complexes, especially in urban centers and areas that are prime for re-development.
Furthermore, developers might emphasize mixed-use developments, combining residential areas with retail, dining, and recreational facilities, catering to the desire for a more interconnected and vibrant lifestyle in Florida’s urban landscapes. According to the Florida Realtors Organization, “There are plenty of multi-family projects, although new construction is slowing due to higher financing costs.”
Although Florida’s housing market is predicted to remain stable, financing variables will impact the consumer, investor, and builder. The following items will persist through 2024.
- Home Prices – Will remain higher than what the average median income in Florida can tolerate. It is not expected there will be a dramatic decrease in prices as witnessed in 2008, as there are very few ARM loans and stricter lending policies, and approximately 50% of buyers were cash buyers during the last three years.
- Mortgage Rates – Rates are anticipated to decline to the 5-6% range, considered a “normal” market. There is no expectation that rates will return to the 3-4% range witnessed during the artificially subsidized economy during COVID-19.
- High Insurance Premiums – Insurance litigation over the last decade has resulted in dramatic premium increases and many carriers pulling out of the market. New regulations restricting AOB’s and the implementation of a subsidized insurance carrier are predicted to stabilize the insurance industry in the future. Further efforts are being made to limit insurance litigation costs to be in line with other states, which will further improve insurance options and fees.
Industry Challenges and Opportunities
The residential construction industry in Florida faces challenges that have also shaped opportunities. The following performance areas will remain the industry’s primary focus throughout 2024.
- Workforce Skills: The shortage in the trade workforce is slated to continue over the next decade. The industry is turning to technology to create efficiencies and utilize the available workforce better. As technology evolves, there is a need for a skilled workforce proficient in advanced construction technologies and sustainable practices.
- Affordability: Balancing innovative designs with affordability remains challenging, especially concerning housing needs across diverse socio-economic groups. The industry will continue to look for different building and design methods to respond to the market’s demands.
- Growth Opportunities: The housing shortage across the United States is millions of units short and would take over 20 years to fulfill if the industry continues to build at the current pace.
Monta Rises to the Challenge
Monta Consulting & Design understands the challenges and demands of the industry. Some design practices you will benefit from when choosing MCD include:
- Sustainable Design: Sustainability means more than being environmentally responsible at MCD. Although green design is a priority, creating spaces and communities that are also fiscally sustainable is equally important.
- Resilient Architecture & Engineering: Given Florida’s susceptibility to extreme weather events, MCD integrates resilient design strategies. The combined structural engineering services and understanding of construction ensure our team can design resilient homes with cost and building materials in mind from the beginning.
- Biophilic Designs: Incorporating nature into is a rising trend used at MCD. Green spaces, natural light optimization, and living walls are integral to building designs, promoting wellness, and improving occupants’ mental health.
- Smart Buildings and IT Integration: From automated climate control to remote monitoring and energy management, smart buildings enhance efficiency and comfort. Our team understands the importance of integrating these elements in the original design.
Many of these trends are driven by factors such as technological advances, sustainability concerns, and changes needed in society. These architectural design trends set the foundation for the entire construction process and are most efficient when they are incorporated into a design from the start.
Florida’s architectural and construction industry is embracing a transformative era characterized by sustainability, technological advancements, and resilience. By leveraging innovative approaches and embracing challenges as opportunities, Monta’s motive is to shape a future that prioritizes the changing needs of the built environment and encourages industry professionals and clients to reimagine living spaces and structures to contribute to a better future.
When you work with MCD, you are working with a team that understands the industry and can take your vision to the next level. Contact our team today for a complimentary consultation, Monta Consulting & Design – Architecture & Engineering