According to a recent economic forecast from the University of Central Florida, the Florida economy is on track to reach $1 trillion by 2018. The growth rate is set to outpace the rest of the country for the next four years, expanding at an annual rate of 2.9 percent.
The forecast cites a healthy job market and home construction as factors pushing the economy forward. If Florida’s gross state product, or economic output, continues to grow by 2019 the economy could even reach $1.074 trillion in 2019. Based on current World Bank figures, the growth would push Florida’s economy to the 16th largest in the world.
Though there are worries that Florida is on the edge of another housing crisis, UCF economist Sean Snaith estimates that Florida is actually experiencing a single-family housing shortage. The report predicts that the housing shortage will correct itself over the next few years as housing continues to grow.
Currently, monthly reports of median home prices have shown increases, with sale prices averaging $213,000 statewide. A shortage of inventory in the single-family market is encouraging builders.
Of the markets expected to see growth, Snaith predicts construction and mining will be the fastest growing sector, with an expected annual average rate of growth of 5.2 percent, followed by professional and business services growing at 4.5 percent annually. While there have been concerns that Florida’s salaries are behind in growth rates, the report predicts wages to grow by 3.7 percent year-over-year.
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