It’s no surprise that new home permits in SW Florida dropped in the latest month. Lee County numbers dropped for two reasons.
There was a recent code change and builders flocked to get permits in the month of June before the new code changes. Additionally, builders in SW Florida real estate have experienced increased inventory levels and have been forced to offer incentives to sell existing inventory.
Builders are reluctant to build speculation homes because of increased supply and decreased demand. Demand is all but gone from investors who fueled the tremendous growth in the SW Florida real estate market the past 3 years. We’re left with actual buyers who need housing, and they have much to choose from.