A new report published by McGraw-Hill Construction Research & Analytics - the publisher of Southeast Construction - details the manner in which Florida will continue to be among the nation's hottest state construction markets over the foreseeable future.
Kim Kennedy, manager of forecasting and author of the report, "Florida Construction - What Lies Ahead for this Important Market?," noted the following: • With an annual population growth rate of 2.37 percent expected over the 2000-2030 period (well above the nation's average of 1.03 percent), Florida's population will be a growing share of the U.S. total for the next 25 years. From just under 6 percent of the U.S. population in 2005, it will grow to nearly 8 percent by 2030. From 2005-2030, more than 11 million people (through birth and migration) will come to live within Florida's borders, bringing its total population to 28.7 million people. • Florida's share of the nation's construction market began to grow dramatically as of 2000, and quickly reached an unprecedented 10.6 percent of the nation's construction starts by 2005. • As housing starts and home sales soften over the next few years, Florida's housing market is likely to ease back. In 2006, the value of Florida's housing starts will decline 4.6 percent to $49.5 billion and its share of U.S. residential value will slip to 13.1 percent. Over the next few years, declines could be even more pronounced, particularly on the multifamily housing side of the residential market. • Florida's nonresidential starts reached a peak value at $11.5 billion in 2000. In 2005, starts came close at $11.3 billion, but remained 3 percent below the 2000 peak. This year (2006), Florida's nonresidential starts are finally expected to top the 2000 peak as they grow by a robust 17 percent to $13.1 billion. • While total nonresidential construction value will increase 17 percent, the rate of growth for institutional construction will far outpace that for the commercial and industrial sector. Written by:
Kim Kennedy, Manager of Forecasting
McGraw-Hill Construction Research & Analytics
With contributions from:
Robert Murray, Vice President of Economic Affairs
Tim Boothroyd, Manager of Product Consulting
Jennifer Coskren, Senior Economist
Kathryn Nash, Economist Contents
Page 3.
Florida's Demographics
Chart - Florida Population as % of Total U.S. Page 4.
The Florida Economy
Chart - Florida Unemployment Rate (% of Labor Force that is Unemployed)
Florida Construction Page 5.
Table - Florida Construction Value
Chart - Florida as % of Total U.S. Construction Starts
Residential Construction Page 6.
Single Family vs. Multifamily Page 7.
Chart - Florida Housing Starts (Five-Year Average in Thousands)
Chart - Top States by Annual Gain in Home Prices, Q1/2006 Page 8.
Table - Home Price Gains in Florida - Percent Change Over Period
Nonresidential Construction
Institutional Construction Page 9.
Chart - Florida Enrollment in Public Elementary & Secondary Schools (in thousands)
Healthcare Construction
Largest Hospital Project Starts 2000-2006
Transportation
Amusement Page 10.
Public Building Construction
Commercial & Industrial Construction
Chart - Where Florida's Nonresidential Construction Dollars Are Going
Retail & Warehouse Construction
Office Construction
Table - Office Vacancy Rates - First Quarter 2006 Page 11.
Hotel and Motel Construction
Table - Hotel Occupancies - First Quarter 2006
Nonbuilding Construction
Highways & Bridges Page 12.
Water Resources
Chart - Where Florida's Nonbuilding Dollars Are Going Page 13.
Electric Power, Gas, Communications
Hurricanes and Materials Prices Page 14.
Commodity Prices Still Headed Up Page 15.
Table - Construction Materials Prices - Producer Price Index Page 16.
Table - Florida Population Projections - Interim Projection of the Populations by Selected Age Groups
Table - Projections of the Populations - United States and Florida Page 17.
Table - McGraw-Hill Construction Starts, Florida Construction Value
(Five-Year Average Annual Construction in Millions of Dollars)
Table - McGraw-Hill Construction Starts, Residential Units
(Five-Year Average Annual Construction in Units) Page 18.
Table - McGraw-Hill Construction Starts, Florida Construction Value
(Percent Change in Construction Value from Previous 5-Year Period)
Table - McGraw-Hill Construction Starts, Residential Units
(Percent Change in Units from Previous 5-Year Period) Page 19.
Table - McGraw-Hill Construction Starts, Florida Construction Value
(Thousands of Dollars)
Table - McGraw-Hill Construction Starts, Florida Residential Units Page 20.
Table - McGraw-Hill Construction Starts, Florida Construction by Region - Nonresidential Construction (Millions of Dollars)
Table - McGraw-Hill Construction Starts, Florida Construction by Region - Residential Construction (Millions of Dollars)
Table - McGraw-Hill Construction Starts, Florida Construction by Region - Nonbuilding Construction (Millions of Dollars) Page 21.
Table - McGraw-Hill Construction Starts, Florida Construction by Major Metropolitan Area - Nonresidential Construction (Millions of Dollars)
Table - McGraw-Hill Construction Starts, Florida Construction by Major Metropolitan Area - Residential Construction (Millions of Dollars)
Table - McGraw-Hill Construction Starts, Florida Construction by Major Metropolitan Area - Nonbuilding Construction (Millions of Dollars)
Table - McGraw-Hill Construction Starts, Florida Construction by Major Metropolitan Area - Residential Construction (Units) Page 22.
Table - McGraw-Hill Construction - Largest Project Starts of January 2000 through April 2006 Page 23.
Table - McGraw-Hill Construction - Largest Projects in Planning - MHC Network Projects Nearing Start Page 24.
Table - McGraw-Hill Construction - Top Players for Florida Construction Projects: Top 10 Owners for Total Nonresidential Construction
Table - McGraw-Hill Construction - Top Players for Florida Construction Projects: Top 10 General Contractors for Total Nonresidential Construction
Table - McGraw-Hill Construction - Top Players for Florida Construction Projects: Top 10 Architects for Total Nonresidential Construction | 
