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 2022 Vintage 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 the previous year.
The fact that the third most populous state is also the fastest-growing is remarkable because it requires significant population growth.
Florida, a consistent “Top Gainer”
In the post-World War II era, beginning in 1946, the annual percentage increase in Florida's population fluctuated but remained positive (Figure 1).
In the 1950s, as 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—to date.
During that decade, Florida’s growth far exceeded the national rate, which ranged between 1.5% and 2% per year during that period. An annual population growth rate of 8% is exceptionally rapid and results in the population roughly doubling every nine years.
Florida continued to grow even as U.S. population growth slowed
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 somewhat of a misnomer, since between 1960 and 1989, Florida’s average annual growth rate remained above 3.0%. Overall, the population of the Sunshine State grew at a rate roughly double the national average.
In the 2000s, the trend of slowing growth continued in Florida, with an average annual growth rate of 1.7%. Although this may seem slow compared to Florida’s growth in previous years, it is still a rapid pace. During 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 growth ranged from 1.0% to 2.0%. In 2022, Florida’s growth was close to the previous decade’s high of 1.9%—not high compared to earlier gains, but still the fastest among the states. Interestingly, Florida had the second-largest numerical gain, behind Texas.
The 2022 Vintage population estimates, scheduled to be released in the coming months, will shed light on which areas and demographic groups contributed to the state’s growth.
Which states are growing the fastest?
Why hasn't Florida been the fastest-growing state in the country in any other year since 1957?
In a word—Nevada.
Florida's population growth since 1946 has been impressive: its population in 2022 is just over 9 times the 1946 population of 2,440,000.
But Nevada's growth has been even more dramatic. Its population of 3,177,772 in 2022 is a staggering 22 times its 1946 population of 143,000. For 36 of the 76 years since 1946, Nevada has ranked first.
Arizona, Idaho, Utah, North Dakota, and Alaska are among the states that grew the fastest in the postwar period.
Broker's Opinion
According to Andrea Pointon, CEO and Broker at Pointon Realty, the new census data further reinforce 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 through the region, especially in Central Florida. There are countless projects under development at the same time, and several have already been approved by government agencies and are expected to break ground at any moment,” says Andrea Pointon.
Florida's population growth is likely to continue on the same trajectory, and with this growth there is—and will always be—a greater demand for housing:
“Our clients can rest assured that their investment will play a crucial role in a booming real estate market: the growing resident population will drive demand for rental properties, offering greater peace of mind to those seeking passive income in U.S. dollars. Similarly, there will be increased demand from buyers, which is good news for investors who plan to build and then sell,” concludes Andrea Pointon.
To learn more about how we can help you invest in Florida, please contact us.