by Edie Ousley
Florida Home Builders Association
FHBA President John Wiseman of Sarasota last month presented a “State of Florida Housing” message to members of the Florida Senate Community Affairs Committee. And he said the challenges facing Florida builders and consumers are serious.
As part of FHBA’s continuing efforts to educate lawmakers on the important role Florida’s construction industry plays in our state, Wiseman said construction is Florida’s second largest industry, pumping more than $65.8 billion into the economy.
“During the past five years, Florida experienced a construction boom and the state’s coffers benefited greatly,” said Wiseman. “The added value we’ve created will pay our state dividends for many years to come.
“But in the last year, Florida’s new home construction starts have plunged. Recent reports show new home construction at its lowest level in nearly a decade. While builder confidence remains high, the pace of construction remains well below the pace a year ago. When the supply and demand factor for new housing balances out, home prices are expected to rebound upward. Couple this with skyrocketing regulatory fees and exactions like impact fees and proportionate fair share, and our state has developed a recipe for skyrocketing home prices.”
Wiseman assailed regulatory fees and exactions that are driving up the cost of housing: “For every $1,000 increase in the price of a home, more than 25,000 Florida families won’t be able to qualify for the American dream of homeownership. These fees, combined with land and site development, soft costs, and construction costs, are the four key components that comprise the price of a new home.”
“Not only have the costs of exactions increased,” added Wiseman. “Land and site development costs have become very costly, as have the costs of materials and labor. But there are other factors affecting new home construction sales: property insurance and property taxes. Lawmakers recently addressed expensive property insurance rates, and their poised to tackle costly property taxes. Each of these factors is affecting our ability to build affordable and workforce housing.”
Wiseman said it’s imperative that we give local governments the tool box they need to help increase the affordable and workforce housing stock our state desperately need, adding that building workforce housing has become increasingly difficult - if not impossible - to build in Florida.
“I love being able to call Florida home, and I love the industry that I work in,” said Wiseman. “I’m among the lucky ones...I have a piece of the American dream because I own my home. It is our hope that lawmakers will take a holistic look at the key factors driving up the cost of housing throughout Florida, and help us rein in these costs. Skyrocketing home prices will only continue to hurt our state’s economy - businesses simply won’t be able to attract the critical service workers our state depends on.”