South Florida’s housing market is changing, and the decisions developers make before construction begins will matter more in 2027.
At the 2026 Commercial Real Estate Symposium, held October 23 at the Boca Raton Marriott and presented by MIAMI REALTORS® and RWorld Commercial, Lesley Deutch, Managing Principal at John Burns Research and Consulting, shared an analysis of the national housing market and the trends shaping Florida’s development landscape.
Her presentation highlighted continued affordability challenges, slower construction activity, shifting demographics, and rising labor costs. Florida still presents opportunities, but the projects best positioned to move forward will be the ones built on careful feasibility work and realistic assumptions.
Figures shown here were shared during the presentation and are included as reported in the symposium notes.
1. Higher Interest Rates Are Reshaping Development Decisions
Housing affordability remains one of the industry’s biggest challenges. Elevated mortgage rates have reduced homebuyer purchasing power, slowed buyer traffic, and made new development projects more difficult to finance.
Builders are becoming more cautious about carrying unsold inventory. Rather than constructing large numbers of speculative homes, some developers are placing greater emphasis on securing buyers before beginning construction. This shift toward to-be-built housing reflects a broader effort to manage risk and reduce the financial burden of unsold properties.
2. Florida’s Land Market May Be Creating New Opportunities
One encouraging observation from the presentation was Florida’s adjustment in land pricing. While some parts of the country continue to experience elevated land values, Deutch described Florida as a market where land prices have begun to normalize.
When land acquisition costs move closer to what completed projects can financially support, previously challenging opportunities may become viable again. Lower land prices alone do not guarantee success. Construction expenses, permitting, labor availability, financing, and local demand still determine whether a site works.
3. Affordability Is Changing Where Floridians Want to Live
South Florida continues to attract residents, businesses, and investors, but affordability is influencing where people choose to settle. Deutch highlighted migration patterns favoring more affordable markets such as St. Lucie County, Daytona Beach, and Sarasota.
| Market | Median home price presented |
|---|---|
| West Palm Beach | $800,000 |
| St. Lucie | $487,000 |
These figures illustrate why buyers seeking more attainable housing may look beyond traditionally higher-priced markets. Changing population patterns can create demand for multifamily communities, neighborhood retail, medical facilities, professional offices, and other supporting infrastructure.
4. Two Generations Could Shape the Next Wave of Housing
Two very different demographic groups could significantly influence housing demand over the next several years.
The 75+ wealth wave
According to figures shared during the presentation, the population aged 75 and older is projected to grow by 47% nationally and 60% in Florida over the next five years. That growth points to potential demand for smaller, more manageable residences, luxury rentals, maintenance-free living, and communities designed for accessibility and convenience.
For South Florida, opportunities may include senior-oriented multifamily developments, residential renovations, adaptive reuse, and housing that supports aging in place.
Younger adults and future households
At the other end of the demographic spectrum, Deutch highlighted approximately 900,000 adults between the ages of 18 and 34 who have moved back in with their parents during the recent economic shift. As employment and affordability conditions improve, these individuals could help drive demand for rental communities, smaller homes, attainable housing, and more efficient residential designs.
5. Labor Availability Could Become One of Florida’s Biggest Construction Challenges
Even when land becomes more affordable and financing conditions improve, projects still depend on qualified people to build them. One significant risk identified during the presentation was Florida’s construction labor shortage.
According to figures shared during the discussion, 90% of Florida builders surveyed reported that recent immigration policy changes and enforcement have significantly affected their trade workforce. While some material costs have stabilized, competition for skilled trades continues to place pressure on construction budgets.
Labor availability can affect project schedules, subcontractor pricing, and the ability to deliver work on time. For projects already underway, proactive scheduling, communication, and procurement coordination become even more critical.
6. The 2027 Outlook: A Market That Rewards Preparation
The presentation did not point to an immediate rebound. Instead, the outlook suggests a period of adjustment in which developers must watch financing conditions, changing demographics, affordability, construction costs, and local demand.
Deutch described a potentially prolonged period of elevated interest rates and a gradual national housing recovery, with Florida’s land-price adjustments creating opportunities for developers prepared to respond.
Preparation creates options.
For some projects, the right decision may be to move forward. For others, it may be to redesign, adjust the budget, reconsider the target market, or wait for improved conditions. The opportunity is in understanding the difference.
What This Means for South Florida Construction
At Danto Builders, we’ve worked through changing economic cycles for decades, and one lesson remains consistent: successful construction begins long before work starts on-site.
It begins with thoughtful planning, realistic budgets, experienced project teams, and an understanding of the client’s business objectives. Whether you’re evaluating a multifamily development, repositioning an existing commercial property, planning a tenant improvement, or considering a new investment, the decisions made before construction often have the greatest impact on the project’s success.
South Florida’s market will continue to evolve. Developers who remain informed, plan strategically, and adapt to changing conditions will be better positioned to respond to the opportunities ahead.
Start with the decisions that shape the build.
Danto Builders works with property owners, developers, investors, and businesses throughout Broward, Miami-Dade, and Palm Beach counties.
- 01Feasibility and early planning
- 02Construction budgeting and cost control
- 03Multifamily and commercial construction
- 04Design-build coordination and delivery
With more than 40 years of experience and over 500 completed projects, our team brings proven commercial construction and design-build expertise to projects of varying sizes and complexities.
Let’s talk about your next project.
Editorial note: This article is based on presentation notes from Lesley Deutch’s appearance at the October 23, 2026 Commercial Real Estate Symposium. Specific demographic projections, survey percentages, and market-price figures are attributed to the presentation notes and have not been independently verified against the original research. Forward-looking observations are projections, not guarantees of future market performance.
