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Florida suffers migration out of state - 7 September 2009

It is known as the US State to which everyone want to move, but for the first time in many years Florida has seen its overall population shrink. Figures just released from University of Florida economist Stan Smith show that Florida’s population dropped by 58,000 last year.

While this isn’t the kind of drop in the number of inhabitants to send legislators scurrying to attract new blood to the Sunshine State in order to fill vacant essential jobs, it does represent the first drop in population Florida has recorded in more than 60 years.

There are a number of reasons cited for this lack of new migrants to Florida. One is that the economic recession affecting the whole of the US means there are fewer jobs to attract workers to the area. Secondly, the lack of movement in the property market is preventing people from selling up in other parts of the US and moving to Florida. One of the biggest drivers behind the growth in Florida’s population has been internal migration, with over 1,000 people per day moving into the State in recent years.

The news of a drop in population, however small it may be, is likely to be good for Brits looking for property in Florida, as it will signal another brake on any momentum behind the property market. If there is a net loss of population, demand for property will not be able to grow significantly, therefore keeping asking prices down in the current climate.

It is unlikely that Florida will suffer much in way for further reductions in overall population, as when the recovery of the US economy begins in earnest the ‘normal’ migration patterns to Florida should resume, and by consequence house prices should begin to rise once more as demand increases.

Meanwhile, one of the best-known developers of property in Florida for the UK and Irish market has stated that unless the property market begins to pick up he will be forced to walk away from a substantial project he was hoping to run. Garrett Kenny, owner of Feltrim Developments told Ireland’s Sunday Business Post he was close to quitting his plans for the Greenlefe Golf & Tennis resort in Polk County due to difficulties in raising finance. Kenny, who stand to lose some €4 million if the deal falls through, was planning to build 450 properties on the site, along with three golf courses, more than 20 tennis courts and a huge conference facility.

In other Florida news, the owners of a property auction company specialising in Spain have stated they are looking at proposals to franchise their business model to other countries, including the US. Direct Auctions, established in 2003 on the Costa del Sol, is looking for individual franchisees to take the model to other countries.

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