Florida’s housing boom has lead to an increase in homebuilding and infrastructure construction. This boom is spurred on by incredible population growth in Central Florida that is showing few signs of slowing. But the housing boom itself is slowing, and the construction industry may be the worse for it. In part one, we covered the cause of the Florida housing boom.
Now, a Hillsborough County construction lawyer at Cotney Construction Law will be discussing why some experts believe that the Florida housing market might be in trouble and what this could mean for construction workers in the Sunshine State. Consult our Hillsborough County construction lawyers for any and all of your construction-related legal needs.
As of this year, the Florida housing market has cooled. Home prices are increasing, while wages are lagging behind. Meanwhile, affordable housing is becoming scarce. This has many people believing that we are in a housing bubble and that the real estate market could soon crash. Were that to happen, home prices would plummet, new home building would drastically decrease, and the construction industry could take a drastic hit as it did during the Great Recession.
Could Central Florida be Immune?
Despite the above warning signs, it’s clear that we’re not dealing with the same situation that caused the previous recession. Contractors are being cautious not to overproduce homes and unintentionally cause a housing bubble. Additionally, lenders are being more cautious when it comes to mortgages.
Central Florida construction remains relatively steady. As we covered in part one, Tampa, Orlando, and the Lakeland-Winter Haven area continue to grow. Construction companies in Central Florida are struggling to keep up with demand. In addition to rising material costs, there remains a scarcity of skilled labor that can cause project costs to balloon.
It’s clear that construction companies in Florida have their hands full while they attempt to keep up with demand, keep project costs down, and keep their workforces safe. If you are a contractor and are concerned that you are not lawfully meeting these standards, consult with one of our Hillsborough County construction lawyers at Cotney Construction Law.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.