Florida Real Estate Surplus Will Disappear First

The surplus of single family and multi-family homes is likely to disappear in Florida before the surpluses disappear in Arizona, Nevada, and California. The reasons for Florida’s surplus disappearing include weather and diplomacy.

Hurricanes are a fact of live in Florida and can be expected to destroy a number of residential dwellings during the next few years. Arizona, Nevada, and California cannot count on such forces of nature to alleviate their surpluses.

The real game changer in Florida, however, would be if the Obama Administration opened up trade with Cuba. If trade with Cuba became legal, there would be a huge influx of businesses and people into Florida especially in areas where the greatest residential surpluses exist.

Ending the Cuba embargo would also cause a surge in demand for office and warehouse space, which currently have high vacancy rates. Corporations wanting to do business in Cuba will beat a path to South Florida to be closer to the action and the ports of Canaveral, Palm Beach, Ft. Lauderdale, and Miami.