Priciest neighborhoods, too
Population growth has brought Florida the highest inflation in the nation, and with it, seven of the top 10 most expensive communities for home prices, plus what $98 million is going to buy in Panama City from BP oil spill settlement proceeds. It’s all in this week’s Florida Economy News.
Sunshine State Inflation: Florida currently has the nation’s highest inflation rate, sitting at 3.91% as of March, based on Moody’s Analytics three-month moving average. The national inflation rate was 3.5%, up from February’s 3.2%. A lot of Florida’s spikes in prices across sectors can be attributed to the ongoing mass influx of people to the Sunshine State. Last year, Florida gained a net 194,000 new residents, which increased the demand and cost of homes, rent, furnishings, food, and other necessary goods and services. Currently, Floridians pay more than most other states for almost everything, ranking as the fifth most expensive state for weekly groceries and nearly triple the national average for homeowners insurance.
Florida Neighbors Take Over High Real Estate: Another effect of the population boom in Florida is the rapid influx of wealth, which has concentrated in certain areas of Miami, such as Coral Gables, now ranked as the priciest community in the country. Zillow data, as reported by Bloomberg shows a typical house there costs $21.2 million. Seven of the 10 most expensive communities in America are here now in Florida, knocking famous neighborhoods in Manhattan off the list for the first time in years, and bumping Beverly Hills, California to fourth place. The Florida price tags are only appreciating, too. The Port Royal and Aqualane Shores communities in Naples saw real estate values increase by 78.3% and 104%, respectively, which beats out the much slower growth rates around 12.3% seen in Beverly Hills.
Almost $100 Million for New FSU Facilities: Florida State University is set to get $98.5 million under a contract recently approved by the Triumph Gulf Coast Board of Directors to build aerospace and advanced manufacturing facilities at its Panama City campus. It’s part of FSU’s Institute for Strategic Partnerships, Innovation, Research and Education (InSPIRE) project. The funds come from a federal settlement with the BP oil company to help coastal communities rebuild after the infamous 2010 Deepwater Horizon oil spill in the Gulf of Mexico. The new facility will be FSU’s “applied research and workforce development arm,” to garner corporate support, accelerate innovation, and allow the growth of new industries. The infrastructure is also meant to support a larger volume of engineering graduates coming through the campus.
LMA Newsletter of 4-29-24
