Florida’s economy continues to evolve and grow. For leaders to strategize and maximize their opportunity in Florida’s economy, it means having the right data at your fingertips. As we prepare for the release of Florida’s first-of-2025 labor market data at the end of the month, where we will provide our next Florida By The Numbers video update, the Florida Chamber Foundation research team is sharing the following trending insights into Florida’s economic landscape. New metrics reflecting the state of Florida’s housing market, inflation rates, business relocations/startups, and tourism are telling a story that business leaders need to know.
Inflation Creeps Up but Remains Lower Than This Time Last Year
Inflation continues to be top of mind for consumers and business leaders alike, especially as higher prices and interest rates impact many aspects of the economy, the way we live, and how we do business. The national inflation rate ticked up for the fourth consecutive month in January, now at 3%, but remained unchanged in the southern region (which includes Florida) at 2.8%. Prior to these past few months, inflation (both nationally and in the southern region) was experiencing overall declines from a peak in June 2022, prompting three interest rate cuts by the Federal Reserve in the latter part of 2024. However, little downward movement in inflation at the beginning of 2025 means interest rate cuts are likely not on the horizon, at least for the first half of the year—meaning there will likely be little change to borrowing costs. While there is uncertainty surrounding the impact of tariffs on interest rates, this halt in rate cuts is in line with our economic predictions for 2025. Our forecast expects there will be, at most, 1 to 2 interest rate cuts towards the end of the year. You can read more about our expectations for Florida’s economy in the Florida Chamber Foundation’s 2025 Florida Economic Forecast.
Could Florida’s Housing Landscape Be Transitioning to a Buyer’s Market?
As Florida’s housing market still dominates headlines, we believe that the latest data is promising for Florida. The first data for 2025 on Florida single-family housing, recently released by Florida Realtors, shows that Florida is seeing steady prices this month, rapid restocking, yet relatively low sales. The relatively low single-family housing sales are often cited as a negative for Florida’s market, but in January closed sales were up 3.6% from a year prior. After years of rapid increases in price and low stock, it is high active listings and steady prices that are driving the true story in Florida’s housing market.
Active listings are up over 30% from January of 2024, with over 35,000 new listings in January 2025 alone. Active listings are the highest they have been since August 2012, although the characteristics of this market are much different. At that time, many sellers had pressure to sell their homes quickly due to foreclosure, which is not the case today. Sellers do not have pressure to sell quickly, so they can hold onto their property awaiting better offers. This dynamic kept home prices steady in January, up 1.2% over the prior year, rather than lower, as you’d expect with the high supply. However, as active listings continue to increase, there is a potential buyer’s market brewing.
Florida is the #1 State for Business Relocations
Florida’s business-friendly climate continues to support economic growth, as new Florida Chamber Foundation analysis has found that a relatively attractive business environment has led to both an influx of firms relocating and new formations. Florida continues to be the top destination for business relocations, welcoming 503 net new firms over the past year, more than three times the number seen in Tennessee, the second-ranked state. Florida remains the best place to start, grow, or move a business. The Florida Chamber Foundation’s new business migration research brief explores the factors driving this success and what it means for Florida’s future. Referencing the research brief’s insights, Florida Secretary of Commerce J. Alex Kelly said, “The latest firm migration data reaffirms what we already know—while Florida is home to a favorable pro-business and tax climate, additional assets like our low crime rate and top-ranked education system continue to make Florida a top competitor.”
The most recent county-level data shows that almost all counties in Florida saw more business applications in 2023 than the year prior. Miami-Dade County had the most business formations, with over 140,000 new business applications, while Gulf County had the largest percentage increase in business formations, with nearly 39% more in 2023 than in 2022. Check out TheFloridaScorecard.org to see the most recent number of new business applications in your county.
Florida Sees Record-Breaking Tourism in 2024
Data released this past month shows a record-breaking year for tourism in 2024, with 142.9 million people visiting Florida. This data from Visit Florida reports that domestic tourism led these historic figures, and international visitation was led by Canada, the United Kingdom, and Brazil.
Be on the lookout at the beginning of April for our next video edition of Florida By The Numbers, where we will be discussing the labor market figures for the first two months of the year, updated trends in the housing market, and more Florida Chamber Foundation research.
TheFloridaScorecard.org and our team’s accompanying research and analyses on these metrics are made possible by the Florida Chamber Foundation’s Community Development Partners (CDP) – companies with a statewide footprint committed to fueling the research and solutions for Florida’s long-term economic success. If you are interested in partnering in this work, please contact Dr. Keith Richard at krichard@flchamber.com to discuss our Community Development Partnership program.
