The last six or seven years has been a challenging economic environment for most of the country. The financial crisis in 2008-2009 created an enormous amount of damage not only in monetary terms, but also shook the core economic confidence of many people. The last several years has brought a very mediocre economic recovery and slow stabilization. However, for most of the middle class and small business owners, it has been a time of uncertainty and waiting to see if economic improvements continue to increase.
With incomes relatively flat and a soft employment market, this has meant many people have put off long term plans, large investments and significant commitments. While the economy and real estate market has not quite bounced back to where it was pre-2008, finally there are some very positive signs for a stable economy.
Florida’s Economy Improving
Florida real estate and businesses have made significant improvements over the last couple of years and the future is beginning to look very bright once again. Real estate pricing has continued to significantly rise in most areas of Florida over the last several years, and looks poised to continue. Outside investors are coming from out of state to purchase real estate in Florida, which is keeping the inventory of available properties contained to a degree.
Improvements in the real estate market have been in both the residential and commercial sectors alike, with comparable percentage gains in property values. Retail Solutions Advisors and other real estate firms in Florida have been closely tracking the data for the last several years, and continue to remain optimistic about further increases in property valuations in 2015.
Small Business Ownership on the Rise
Confidence among current small business owners and an increase in individuals renting commercial space to open their first business venture or expand current business operations is on the rise. Commercial property management firms have reported improving occupancy rates in retail locations, such as strip malls and multi-property locations across most areas of Florida. This means small business ownership is increasing, which is always a very good sign of an improving economy.
Small business is a very large contributor to the overall economy on a local and national level. Florida is often a good general indicator for what trends will start to appear in the broader economy because of two reasons. First, Florida has very high economic participation from people who live outside of the state, but who live part-time or spend their holidays in Florida. Second, the Florida real estate market is one of the most active real estate markets in the entire country and includes property types of all kinds.
While the last several years have been challenging, the clouds might be starting to part. Recent reports indicate there is more confidence building in the economy on a broader scale than in previous years. There may still be some challenges to overcome, but it appears the economy may finally be getting back on track with some momentum.