Florida to Outperform U.S. in 2014

Florida became the third most populous state in the United States in 2013, bumping New York from its long-standing status and positioning the state for increased economic gains in 2014. According to a report released by TD Economics, an affiliate of TD Bank, strong population growth, income growth and reflation in household wealth will drive the Sunshine State to outperform the nation by a considerable margin in 2014 and 2015.

“Florida experienced a watershed year in 2013,” says Beata Caranci, TD Economics deputy chief economist. “After lagging for six years, its economic expansion allowed the state to reclaim its place of being a national outperformer, alongside a population that is estimated to have swelled to the third largest in the nation, second only to California and Texas.”

TD Economics estimates that Florida’s population will stand 20 million strong next year, an important fundamental for the state’s long-term economic outlook thanks to continued strength in consumer spending and housing demand.

The expansion is on track to hit 2.4 percent in 2013 before accelerating to 3.5 percent in 2014 and 4 percent in 2015. That would outstrip the national pace of 1.8 percent, 2.7 percent and 3.1 percent for those three years, respectively. TD Economics expects the housing, retail, tourism, and professional and business service sectors to fuel the state’s growth over the next two years.

Read more at Florida Realtors®