Florida Real Estate News
Fla.’s growth in jobs and population, plus a shortage of housing, is driving rising demand for local municipal debt sold for neighborhood developments.
Population boom helps fuel demand for dirt bonds
ORLANDO, Fla. – Demand is rising in Florida for local municipal debt sold for neighborhood developments amid the state’s population boom and a shortage of housing. Homes in the state are selling at the fastest pace in three years. The median time it took to sell a house in the third quarter of last year was 82 days, the lowest for any three months since at least 2014, according to Florida Realtors®.
“We are seeing recoveries across numerous areas of Florida that were previously under a lot of financial pressure,” says John Miller, co-head of fixed income at Nuveen Asset Management, which hold $1.5 billion of Florida CDD bonds sold for 220 different communities, with $1.7 million of that debt in default.
Jobs are also luring people to Florida, whose 3.6 percent unemployment rate is the lowest in a decade and below the 4.1 percent national average. Land-backed debt is repaid with assessment fees that homeowners pay, and many of the developments that fell into default during the housing crisis have been refinanced.
Source: Bloomberg (01/11/18) Kaske, Michelle