Where Is the Most New Construction in Florida? Top Cities Revealed

June 12, 2024

The U.S. South has seen a significant increase in new-home construction over the past several years. Florida, in particular, has become a major focal point for this boom, with six of the top 20 U.S. cities for new-home construction located in the state.

"2014 Seminole County Florida Construction" by eyecmore is licensed under CC BY-SA 2.0. To view a copy of this license, visit https://creativecommons.org/licenses/by-sa/2.0/.

Top Cities for New-Home Construction in Florida

North Port

Ranked No. 2, North Port is situated between Sarasota and Fort Myers. It boasts 5,715 new homes per 100,000 people, reflecting its growing appeal as a residential hub.

Lakeland

Coming in at Rank No. 3, Lakeland is positioned in Central Florida. This city is rapidly expanding, catering to the increasing demand for new homes in the region.

Orlando

Orlando, also located in Central Florida, is ranked No. 4. Known for its world-renowned theme parks and entertainment options, the city continues to attract new residents and foster substantial housing developments.

"All Aboard Florida Construction Site Downtown Miami" by Phillip Pessar is licensed under CC BY 2.0. To view a copy of this license, visit https://creativecommons.org/licenses/by/2.0/.

Tampa

Ranked No. 7, Tampa includes numerous new homes reflecting its expanding urban and suburban areas. Tampa's diverse economy and vibrant cultural scene make it a magnet for new residents.

Cape Coral

Ranked No. 8, Cape Coral, a city in South Florida, has 1,923 new homes per 100,000 people. The city's canal-lined neighborhoods and coastal living are big draws for homebuyers.

Miami

Miami ranks No. 9 with 1,845 new homes per 100,000 residents. As a global city with a rich cultural tapestry, Miami continues to attract significant residential growth.

Data Analysis and Insights

A study conducted by MoveBuddha used data from the U.S. Census Bureau and the Department of Housing and Urban Development to analyze the new construction trends. The vibrant new-home construction activity in Florida can be attributed to multiple factors including demographic growth, a favorable business environment, and economic opportunities.

Contributing Factors to Florida's Housing Boom

Demographic Growth

Florida's significant population growth is a primary driver of the housing construction boom. The state's population was estimated at 21.3 million in 2018 and has continued to rise, attracting newcomers due to its appealing climate and lifestyle options.

Economic Opportunities

The strong job market, particularly in high-wage sectors, supports robust housing demand. Additionally, Florida's business-friendly policies and lack of state income tax make it an attractive destination for businesses and individuals alike.

Migration Trends

New York's rent control policies have spurred investment activities from New York-based investors into Florida's real estate market, contributing to the surge in new-home construction. The state's increased work location flexibility and influx of retirees from colder regions also play crucial roles in driving demand.

"LEGOLAND Florida construction" by insidethemagic is licensed under CC BY-NC-ND 2.0. To view a copy of this license, visit https://creativecommons.org/licenses/by-nc-nd/2.0/.

Challenges and Innovative Solutions

Land Availability and Infrastructure

The availability of ready-to-build land is currently at an all-time low, and rural areas often lack the infrastructure necessary to support large-scale residential construction. Most new development is therefore concentrated around existing suburban areas, raising population density concerns.

Innovative Strategies

To overcome these challenges, some top builders are adopting innovative strategies such as acquiring land, selling it to infrastructure development firms for development, and then buying it back once it's ready for residential construction. This method expedites the availability of buildable land and allows homebuilders to scale production to meet demand.

Future Outlook

Experts predict continued strong population growth through at least 2028. Significant development is expected in key cities contributing to the state's overall real estate growth. Despite potential challenges, Florida's construction industry is well-positioned to adapt and thrive, providing an ample supply of housing to meet the needs of its burgeoning population.

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