Job growth propels Florida property investment market
- Florida unemployment figures at 6%, lowest rate since June 2008 (Department of Economic Opportunity)
- Strong domestic demand for housing driven by four key factors: Leisure, Transport, Medical, and Agriculture (Philip Button, Brookes & Co)
- Brookes & Co domestic investment project The Club at Sunset Lake 83% sold in under four weeks
Florida’s Department of Economic Opportunity has revealed that the state’s unemployment figures now stand at the lowest rate since June 2008, a figure of 6% in September. Not only this but the ADP Regional Employment Report also showed that Florida grew the private sector by 20,050 jobs in October, meaning that 2014 looks as though it will be closing on a positive note for the state’s employment industry.
When considering the fact that just a year ago, Florida’s jobless numbered on average 7.2% in 2013, and a less than giddy figure of 11.3% in 2010, the ‘Sunshine State’ has come a long way in recent times, making firm progress in this important indicator for the country’s wealth. The knock-on effect of the increasing stability in Florida’s job market is that the property market is also, not only stabilising, but growing with optimistic fervour.
This is especially true for the domestic market, an often un-thought-of sector in the shadow of the bright lights and Disney magic of the tourism sector, yet boasting excellent investment prospects, especially within the context of the bolstered regional employment. Launching a new investment project in Orlando on 1st November – The Club at Sunset Lake – the UK’s leading property investment company, Brookes & Co, recognised this opportunity and offered, through the new project, buyers the chance to capitalise on this.
The project presents a brand new gated development to the market, situated in the heart of central Florida and close to all major amenities. With the luxurious facilities, including an exclusive club house and swimming pool, fitness centre and spa, sports courts and cycle paths, as well as a lake-front park and picnic area, The Club at Sunset Lake certainly makes the most of its beautiful setting.
Offering a 5-year rental guarantee with a 6% return after all costs, from a range of spacious two, three and four bedroom properties priced from £96,950, it is clear to see why the project is the ideal investment opportunity, registering enviable success so far.
And what a success it has been. Within the period of under four weeks since the launch of The Club at Sunset Lake, Brookes & Co have sold 83% of the units available. Demand is high, but what, specifically, is driving the growing domestic market of Florida?
Philip Button, Managing Director of Brookes & Co gives his take,
“It can be said that the increasing levels of employment in the state are driven by four key factors: Leisure, Medical, Transport and Agriculture. Individually, each of these facets are key to the economic workings of Florida, but together these sectors influence not only the success of the Floridian economy but also contribute wholeheartedly to the coffers of the US in general terms.”
The leisure market is the go-to market when thinking of Florida, the abundance of theme parks, Disney World, Universal Studios and the like, have become synonymous with Florida’s Orlando, making the state the country’s top tourist hotspot. Disney are building several new parks over the upcoming year including Avatar Land, with Universal Studios’ ‘The Wizarding World of Harry Potter’ already a huge success and visitors soon able to ride the new Hogwarts Express! At Legoland, an expansion at Miniland and a new hotel being built to cater for demand, demonstrates how this market is booming. And with this boom comes expanded job prospects for those developing and building the projects, as well as those staffing them to cater for the record tourist numbers.
Transportation is central to the state’s success, with rail expansion a major arena that is impacting heavily on Florida’s domestic property market. The landmark SunRail project that will revolutionise commuter travel is expected to be finalised by 2017 and is doing wonders for the local and national economy. The project is creating more employment (an independent financial study found Sunrail has the potential to create nearly 260,000 jobs) but it is growing the state’s wealth too, with a predicted impact on theUS economy of $8.8billion.With airport growth also in the pipeline, and SunRail predicted to link up to the newly expanded airport, Florida’s transport links are going from strength to strength, helping the domestic market flourish in turn.
In the medical sector, the Lake Nona Medical City is being developed in Orlando, a groundbreaking project of such magnitude that it is set to create 30,000 jobs – an impressive impact by all accounts. In turn, this project is on track to also create $7.6 billion wealth for the economy, leading to more people working locally and therefore more people looking for rental properties. Due to complete in 2017, this makes now the ideal time to purchase a property for the purpose of renting it to the domestic market.
In their latest ‘Fresh from Florida: The Journal of Florida Agriculture’, Florida’s Department of Agriculture and Consumer Services revealed that the industry was worth a staggering $108 billion to the Sunshine State, with Florida the US top producer of not only oranges but also sugarcane, sweetcorn, watermelon and squash. Florida Naturals, a leading fruit juice producer, who own over 50,000 acres of fine citrus groves in the heart of Central Florida, continue to grow, creating many new jobs in the area too.
All of this collectively has huge economic impact on the Orlando area and, in fact, Forbes recently ranked the city as number one in their report on ‘The Top 10 Cities and States for Job Growth’. In turn, this growth gives rise to significant demand for high- quality rental properties in the area for the workers and their families to live in, as has been proved by Brookes & Co’s The Club at Sunset Lake. The Sun has certainly returned to the Sunshine State!