SWFL Regional Economic Indicators
🌴 How’s the Economy Doing? Here’s the Scoop!
As 2024 wrapped up, the U.S. economy showed solid strength. Unemployment dropped slightly to 4.1%—a level economists call “full employment.” The economy grew at a healthy 2.3% pace in the fourth quarter, thanks to strong consumer and government spending. People were feeling more confident too—consumer sentiment rose nearly 4 points by December, and small business optimism hit its highest level in six years!
However, inflation ticked up. Prices rose slightly in the last quarter of the year, with the Fed responding by cutting interest rates twice. They’re now holding steady at 4.25–4.5% as we head into 2025, keeping an eye on policy changes that could impact inflation.
Locally in Southwest Florida:
- Jobs & Employment: Our region’s unemployment rate was 3.6% at the end of 2024, still relatively low but creeping upward. As of February 2025, it hit 4.2%—the highest since mid-2021.
- Tourism: After a dip in October (thanks to Hurricane Milton), visitor numbers bounced back in November. RSW airport saw over 2.2 million passengers so far in 2025 (down 3.9%), while PGD saw a big jump (up 19.9%).
- Spending & Sales: Taxable sales hit $3 billion in November 2024, but we’ve now seen year-over-year declines for 14 straight months.
- Housing Market: Inventory rose 23% in Q4, but new building permits dropped 21%. Still, home sales were up 13% by year’s end. February 2025 saw an 8% drop in single-family home sales compared to last year.
- Insurance Worries: Some buyers are hesitating due to issues with property insurance—especially with Citizens Insurance.
- Legislation to Watch: A new Florida bill would require aging condo buildings (30+ years old and 3+ stories high) to undergo regular inspections. Those that don’t comply could lose access to state-backed insurance.
Statewide Snapshot:
- Consumer confidence in Florida dropped sharply in March.
- Miami-area prices rose 2.9% over the past year—higher than both the national and regional averages.