Palm Beach Boom Could Translate into Real Estate Investment Opportunities
Spikes in earnings, businesses, population, and more in the Palm Beach County area could spur real estate investment opportunities in Southeast Florida.
When Florida’s Palm Beach County was first established in 1909, only about 5,300 Floridians resided there while local government officials conducted their meetings in an old schoolhouse.
Fast forward to today
According to the U.S. Census Bureau, Palm Beach County is now home to nearly 1.5 million residents, and approximately 54,000 businesses — including Lockheed Martin, Pratt & Whitney, ADT, Carrier, and TBC Corporation — call it home. The median single-household income for county residents is now more than $76,000 annually, while the average two-income household earns nearly $116,000 annually.
But these statistics tell only part of the story. Where agriculture, construction, and tourism were once the top industries in Palm Beach County, that has all changed. According to a 2023 study Jerry D. Parrish, Ph.D., Ph.D. did for the Florida State University’s John Scott Dailey Florida Institute of Government, while Palm Beach County remains the number one agricultural county in Florida, the economy there has grown much more diverse. Leading industries include healthcare, construction, real estate, leisure and hospitality, and financial services. Financial services firms are so prevalent there, that many locals refer to Palm Beach County as “Wall Street South.”
Much of this expansion can be attributed to a population boom that has taken place in the area in recent years. According to The Miami Association of Realtors (MAR), in 2022 domestic migration to Southeast Florida drove a net inflow of income (adjusted gross income inflow less outflow) of $10 billion, slightly more than double the $4.8 billion net income that was witnessed in 2019. Migration to Florida in 2022 accounted for the largest net flow among all states in the U.S. As a result of this, Southeast Florida’s aggregate household incomes skyrocketed, outpacing most other regions in the U.S.
What does this record-setting growth in Palm Beach County mean for investors seeking new real estate investment opportunities?
In a more recent report, The MAR makes four important predictions that, if accurate, could enhance already-existing and ground-up construction real estate investment opportunities in the area.
The Miami Association of Realtors four predictions are:
Mortgage rates may fall to 6.6% by the end of 2024 and 5.7% by the end of 2025.
Although home sales in the area may decline by as much as 6% this year, the organization predicts a 4% bump in the sales of single-family homes next year.
Single-family home sale prices will remain firm, rising by 7% in 2024 and 2025, and may go as high as 10% by late 2025.
Southeast Florida will continue to have strong economic fundamentals throughout 2025.
According to Gay Cororaton, chief economist for The MAR, these upbeat predictions are based on current demand for single-family properties, declining home prices, heightened investor confidence, and “sustained migration from out-of-state movers and international buyers.” These factors taken together, she says, “will keep the million-dollar market vibrant.”
In April, The MAR published research based on Cushman & Wakefield data that confirmed — as of Q1, 2024 — Miami-Dade County had about 24,000 multifamily units under construction, putting it among the highest for 90 markets Cushman & Wakefield surveyed. According to the company, there were also 18,000 multi-family units being built in the Fort Lauderdale and Palm Beach markets.
Growth in southeastern Florida is reflected in other metrics as well. For instance, the popularity of electric vehicles (EVs) has not escaped the attention of Florida drivers. One study found that Florida residents own more than 167,000 EVs, making Florida the state with the second-highest number of EVs in the country, right behind California. This trend will only continue according to another study which found that, by 2030, there will be more than 780,000 EVs registered in Florida, helping the state realize a 70-80% reduction in emissions.
To keep up with the growth of EVs in Florida, Electrify America, a subsidiary of VW America, plans to install advanced, fast-charging EV stations throughout the Miami metro region. Florida Power and Light, meanwhile, is installing 600 new EV charging stations at approximately 100 locations throughout its service area.
Palm Beach County has come a long way since the days when government officials convened in schoolhouses to meet. Today, it’s one of the fastest-growing communities in the U.S. As a result, both ground-up construction and EV ownership in the area is booming. Investors seeking new real estate opportunities may want to keep their eyes on Palm Beach County and Southeast Florida.
