Florida is among the fastest growing states in the nation and has been since the end of World War II. Construction has figured far more prominently in the state's economy than in the economy of the nation as a whole. The health of the industry, however, has been uneven. In some periods its workers' share of the state's earned income has risen to over 10 percent; in other years it has fallen below 5 percent.
The cyclical nature of the construction industry is largely the result of factors outside of Florida's control. When interest rates are high or when there is a business recession, the industry declines. When developers can obtain loans cheaply, there is great expansion. The availability of ventureÊcapital and not demand sometimes stimulates construction, which has led to overbuilding. At times the number of condominiums on the market far exceeds demand. In the late 1980s an oversupply of office buildings developed, particularly in the state's central cities. Since the number of U.S. citizens entering the 60-year-old age group will decrease during the 1990s, migration to Florida is expected to slow. This may dampen enthusiasm for new residential construction.
Construction has diminished in southeastern Florida, particularly in Dade County (Miami) and to a lesser extent in Broward County (Fort Lauderdale). The construction industry remains dynamic in Palm Beach and Martin counties as well as in the Orlando area and along the southwestern coast, especially in Collier County. Despite the hopes of the region's developers, north Florida generally has not had the construction activity of peninsular Florida.
