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Downtown Fort Lauderdale 2025 |
By Jane Feehan
Fort Lauderdale has seen several building busts and booms since
World War II.
A review of 1974-75 news stories offers both similarities to and differences from today’s housing picture.
A national recession coupled with
an energy crisis played a role in Fort Lauderdale’s housing prospects, but local
factors take center stage in this summary.
This is not to be considered an economic analysis.
1974-1975
- 1974 “brought a halt to one of the biggest building and real estate booms in the area’s history.”
- The area had seen five construction downturns since World War II; the 1974 slump was viewed as the worst.
- Interest rates across the nation rose to over 11 percent. Congressional spending was reported “as greatly responsible for today’s double-digit inflation.”
- South Florida newspapers reported “too much building going on.” One analyst claimed more units were being built than could be absorbed by population; the “absorption rate was key to the health of the construction industry.” Some condo and rental building projects plunged into financial straits.
- Adding to the condo glut were speculators unloading multiple units at the same time.
- Few visited condominium models at sales centers. Some rental buildings were only half occupied. Developers thought about converting some buildings into condos but reversed plans as the condo market worsened. A few developers rented out unsold condo units.
- Construction of single-family homes stood at a fraction of new condo and rental units built.
- Thousands of construction workers were laid off. Area unemployment in 1975—over 18 percent—exceeded that of the state and nation.
- The number of Broward County’s condo units increased 122 percent by 1974. The steep trajectory began in 1973.
- Even before 1973 the list of Fort Lauderdale new condo buildings was impressive. New condos opened as reported by Fort Lauderdale News:
1970:
Birch Crest, Marine Tower, Royal Mariner; Regency Tower South and the Venetian;
1971-mid
70s: Riviera, Shore Club; Point of Americas; Embassy Towers; Plaza South.
- By 1975 other problems hit the condo market: Construction and safety concerns; recreation leases and confusing regulations and restrictions. Condo sales were still down by the end of 1975. See below for 2024-25
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Downtown Fort Lauderdale 2023 |
2024-2025
Though numbers for late 2024 and 2025 Fort Lauderdale and Broward County are not in yet, some comparisons prove noteworthy.
- Interest rates, though lower than they were during 1974-1975, are higher than in recent decades; they are expected to be about 6.3 percent or a bit lower by the end of 2025, driving many to rentals instead of condos or single-family dwellings.
- Many today blame Congressional spending for inflation woes.
- The condominium market is flat while single-family dwelling sales are up. Condos are not selling because of high special assessments to bring buildings up to new standards required by law after the Surfside condominium collapse in 2021. The law also requires increasing condo reserves for repairs, another financial obstacle for condo buyers.
- The Florida Chamber of Commerce reported in early 2025 that the number of new Florida residents was nearly equal to those moving out of the state in 2024, reversing a trend that hit a high for newcomer traffic in 2021-22.
- Broward County unemployment rate in March 2025 (unadjusted) stands at 3.4 percent.
- Ten-X.com published a report in early 2024* that indicated Fort Lauderdale saw the highest rental vacancy rate since the beginning of 2023. It was also reported that most new rental buildings focus on building apartments with an average rate of $2,400+ per month for a one-bedroom apartment.
- The 2024 rental building construction wave is expected to continue until at least 2026. Ten-X also reported that apartment fundamentals softened in 2024. Vacancy rates in Fort Lauderdale at four-and five-star buildings stand at 9.8 percent.
- Another company reports the vacancy rate in downtown Fort Lauderdale averages across all rental buildings 4.9 percent. Pompano Beach reports a 3.8 percent vacancy rate; southwest Broward and Coral Springs report a 4.9 percent vacancy rate.
- A vacancy rate over 10 percent indicates low demand (or overbuilding?). It is interesting to note that the vacancy rate in the Cape Coral-Fort Myers area was at 15.3 percent in 2023, the highest vacancy rate in the nation that year.
- New construction and vacancy numbers vary according to the year, the quarter and the publication. Varying reports claim 10,000-14,000 units going up in the next year or so in the Fort Lauderdale area.
Numbers for 2024 and 2025 will reflect economic and political uncertainty. Many factors differ from 1974-75 while some ring familiar. Let’s hope the 1974-75 story does not repeat.
Sources:
Fort Lauderdale News, May 30, 1974
Fort Lauderdale News, June 1, 1974
Fort Lauderdale News, July 11, 1974
Fort Lauderdale News, Nov. 19, 1974
Fort Lauderdale News, Sept. 7, 1974
Fort Lauderdale News Jan. 16, 1975
Fort Lauderdale News, Jan. 22, 1975
Fort Lauderdale News, Nov. 22, 1975
Sun-Sentinel, Feb. 7, 2025
U.S. Census Bureau Construction Coverage
*TenX 2024 Knowledge Center: Jan.11, 2024
Matthews Real Estate Services: Matthews.com, Broward County,
Sept. 18, 2024
Tags: Fort Lauderdale building, Fort Lauderdale
developments, overbuilding