After decades of rapid population growth, Florida is now the fastest growing state in the country for the first time since 1957, according to the U.S. Census Bureau's Vintage 2022 estimates released today [December 22, 2022].
Florida's population increased by 1.9% to 22,244,823 between 2021 and 2022, surpassing Idaho, the fastest growing state of the previous year.
The fact that the third most populous state is also the fastest growing is remarkable because it requires significant population gains.
Florida, a consistent "Top Gainer
In the post-World War II era after 1946, the percentage increase in Florida's population each year fluctuated, but was always positive (Figure 1).
In the 1950s, when air conditioning became more common in the hottest parts of the United States, Florida's annual population growth averaged 6.1% (Table 1). It reached 8% in 1956 and 1957, near the peak of the Baby Boom, marking the last time Florida was the fastest growing state - until now.
During that decade, Florida's growth far exceeded the national rate, which was between 1.5% and 2% per year in that decade. An annual population growth of 8% is exceptionally fast and translates into a population doubling approximately every nine years.
Florida has grown even as US population growth has declined
The Baby Boom (1946-64) came to an end in the 1960s and Florida's extraordinary growth during the 1950s slowed down. However, "slowed down" is a bit of a misnomer, since between 1960 and 1989, Florida's average annual growth remained above 3.0%. Generally, the Sunshine State's population grew at about twice the rate of the national average.
In the 2000s, the slowing trend continued with Florida averaging an annual growth rate of 1.7%. While this may seem slow compared to Florida's growth in previous years, it is still an accelerated pace. In the same period, national growth hovered around 1.0% per year.
This trend has continued since 2010. Between 2010 and 2020, national growth fell from 0.9% to 0.5% each year, while Florida's increases ranged from 1.0% to 2.0%. In 2022, Florida's growth was close to the previous decade's high at 1.9%, not high compared to previous gains, but still the fastest among the states. Interestingly, Florida had the second largest numerical gain, behind Texas.
Vintage 2022's population estimates, scheduled to be released in the coming months, will clarify which areas and demographic groups contributed to the state's growth.
Which states are growing the most?
Why has Florida not been the fastest growing state in the country in any year since 1957?
In a word - Nevada.
Florida's percentage gains since 1946 have been impressive: its population in 2022 is just over 9 times the 1946 population of 2,440,000.
But Nevada's increases are even greater. Its population of 3,177,772 in 2022 is a staggering 22 times the 1946 population of 143,000. For 36 of the 76 years since 1946, Nevada has held first place.
Arizona, Idaho, Utah, North Dakota and Alaska are among the other countries that have grown the fastest in the post-war period.
Broker's opinion
According to Andrea Pointon, CEO/Broker of Pointon Realty, the new Census data further reinforces why the state of Florida remains the best place to invest in 2023 and beyond:
"We can confirm Florida's positive figures just by taking a drive around the region, especially in Central Florida. There are countless projects under development at the same time and several that have already been approved by public bodies and are due to start construction any day now," says Andrea Pointon.
Florida's population growth tends to continue on the same trajectory and with this growth there is/will always be a greater demand for housing:
"Our client can rest assured that their investment will be a crucial part of a heated real estate market: the increase in the population of residents will boost demand for rental properties, giving more peace of mind to those looking to make a passive income in dollars. Likewise, there will be an increase in demand for buyers, which is good for the investor who intends to build and then sell," concludes Andrea Pointon.
To find out more about how we can help you invest in Florida, please contact us.