News

April 2021: Construction boom in all areas of Southwest Florida

Over the past 12 months Florida in general has experienced tremendous growth and the west coast of Florida has been in the mix. We have a regional perspective (Tampa to Naples) with regards to understanding the trends on the commercial front as well as the residential front.  There are many causes for the increase in construction activity.  The migration from the north continues and over 1,000 people a day are making Florida their home.  Some are renting (boom in apartment construction) and many are buying (boom in existing homes and new home construction).

The demand is driving prices higher (supply & demand) for resales.  The demand for construction materials is driving new home prices upwards as well.  The quest for residential building homesite continues as many of the national builders seek out tracks of land to build their products.  Some of the builder seek larger parcels. However, some are building infill smaller locations.

On the west coast of Florida, the largest increase in prices are seen in Collier County specifically in Naples along the water.  A few hours north Sarasota becomes the other anchor of price increase with Longboat key and the barrier island typically leading the price increases. However, it may be the places in between that will see dramatic increase in interest. The sleepy area of the Cape Haze peninsula near the entrance to Boca Grande (also a high-priced area) is poised for dramatic growth.  This may be due to the single family homesite inventory that is already developed and ready to build.  There are about 20,000 homesites in the area of South Gulf Cove and surrounding areas.  A few are also ready to have final utilities added to the communities.

There are also many new commercial developments in the planning stage for this area of Charlotte County.