Cape Coral–Fort Myers.....................................................................29

Short Term Outlook for Cape Coral-Fort Myers, FL August 2022 Forecast

2022:2 2022:3 2022:4 2023:1 2023:2 2023:3 2023:4 2024:1 2024:2 2024:3 2024:4 2025:1 2025:2

Personal Income (Billions $)

Total Personal Income 50.0 50.8 51.9 52.4 52.9 53.3 53.9 54.7 55.4 56.2 57.1 58.0 58.8 Pct Chg Year Ago 7.2 7.5 7.8 7.7 5.7 5.0 3.9 4.3 4.7 5.4 5.8 6.0 6.1 Wages and Salaries 19.4 19.7 19.9 20.0 20.1 20.1 20.2 20.3 20.5 20.7 20.8 21.0 21.2 Nonwage Income 30.6 31.0 32.1 32.5 32.8 33.2 33.7 34.3 34.9 35.6 36.3 37.0 37.6 Real Personal Income (12$) 41.2 41.4 41.9 42.0 42.1 42.3 42.6 43.0 43.4 43.9 44.3 44.8 45.2 Pct Chg Year Ago 0.7 1.1 1.9 2.9 2.1 2.3 1.6 2.3 3.0 3.7 4.2 4.3 4.3 Per Capita Income (Ths) 61.8 62.4 63.4 63.7 63.8 64.1 64.4 65.0 65.4 66.1 66.8 67.5 68.1 Real Per Capita Income (12$) 51.0 50.8 51.2 51.0 50.9 50.8 50.8 51.1 51.2 51.6 51.9 52.2 52.4 Average Annual Wage (Ths) 64.4 64.9 65.1 65.3 65.5 65.8 66.6 67.2 67.9 68.5 69.1 69.6 70.1 Pct Chg Year Ago 10.1 7.7 3.9 2.9 1.7 1.5 2.3 2.9 3.6 4.0 3.7 3.6 3.3

Establishment Employment (Place of Work, Thousands, SA)

Total Employment 299.9 302.8 303.6 304.5 304.8 304.1 302.7 301.2 300.4 300.1 299.8 299.8 300.5 Pct Chg Year Ago 6.7 5.6 4.2 3.2 1.6 0.4 -0.3 -1.1 -1.4 -1.3 -1.0 -0.5 0.0 Manufacturing 7.5 7.7 7.8 7.7 7.7 7.5 7.4 7.2 7.1 7.0 6.9 6.8 6.8 Pct Chg Year Ago 7.6 7.2 6.8 4.2 1.6 -1.5 -4.8 -6.4 -7.4 -7.6 -7.2 -6.0 -4.3 Nonmanufacturing 292.3 295.1 295.8 296.8 297.1 296.6 295.3 294.0 293.3 293.1 292.9 293.0 293.8 Pct Chg Year Ago 6.6 5.6 4.1 3.2 1.6 0.5 -0.2 -0.9 -1.3 -1.2 -0.8 -0.3 0.1 Construction & Mining 35.2 35.5 35.0 34.7 34.2 33.5 33.0 32.5 32.0 31.8 31.5 31.4 31.3 Pct Chg Year Ago 3.3 3.5 1.2 -1.0 -2.9 -5.5 -5.9 -6.5 -6.2 -5.3 -4.4 -3.4 -2.4 Trade, Trans, & Utilities 59.9 59.8 60.0 59.8 60.4 60.2 60.1 59.4 58.4 57.9 57.4 56.9 56.7 Pct Chg Year Ago 7.8 6.2 4.8 1.9 0.9 0.7 0.1 -0.7 -3.5 -3.7 -4.4 -4.1 -2.8 Wholesale Trade 8.9 9.1 9.2 9.4 9.5 9.5 9.5 9.6 9.7 9.7 9.8 9.9 9.9 Retail Trade 44.2 43.8 43.9 43.3 43.9 43.5 43.4 42.4 41.2 40.7 40.1 39.5 39.2 Trans, Wrhsng, & Util 6.8 6.9 6.9 7.0 7.1 7.1 7.2 7.3 7.5 7.5 7.5 7.5 7.6 Information 3.3 3.2 3.4 3.4 3.3 3.1 3.0 3.0 3.0 3.0 2.9 2.9 3.0 Pct Chg Year Ago 8.2 3.7 4.5 4.5 0.6 -3.8 -9.8 -11.8 -8.9 -5.6 -4.6 -3.1 -0.7 Financial Activities 15.7 15.9 16.1 16.6 16.7 16.6 16.6 16.6 16.8 16.8 16.8 16.8 16.8 Pct Chg Year Ago 11.3 9.5 10.0 11.8 6.7 4.3 2.9 0.1 0.4 1.2 1.4 1.1 -0.1 Prof & Business Services 42.3 42.8 42.8 42.3 40.8 39.5 38.2 37.2 36.6 36.1 36.0 36.3 36.7 Pct Chg Year Ago 6.3 3.4 1.0 -1.3 -3.3 -7.8 -10.7 -12.0 -10.4 -8.6 -5.6 -2.4 0.4 Educ & Health Services 33.0 33.6 33.9 34.1 34.3 34.4 34.6 35.0 35.3 35.6 35.8 35.9 36.0 Pct Chg Year Ago 4.2 5.3 6.3 6.3 3.7 2.6 2.1 2.8 3.1 3.4 3.4 2.7 1.9 Leisure & Hospitality 46.9 47.3 46.9 47.4 48.5 50.0 50.2 50.3 50.9 51.3 51.4 51.3 51.8 Pct Chg Year Ago 12.2 11.5 6.2 6.8 3.5 5.6 7.1 6.1 4.9 2.6 2.3 2.0 1.7 Other Services 12.3 12.6 12.7 12.8 12.8 12.9 13.1 13.3 13.6 13.8 14.0 14.2 14.4 Pct Chg Year Ago 9.0 8.8 7.8 7.2 4.0 2.8 3.0 3.8 6.0 6.9 7.1 6.7 5.8 Federal Government 2.3 2.3 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 Pct Chg Year Ago -5.0 -0.1 1.2 2.3 6.5 4.2 1.8 0.0 -1.4 -1.0 -0.6 -0.3 0.1 State & Local Government 41.5 42.1 42.6 43.2 43.6 43.9 44.1 44.2 44.4 44.5 44.6 44.7 44.8 Pct Chg Year Ago 2.5 1.0 1.7 2.9 5.1 4.3 3.4 2.5 1.7 1.5 1.2 1.1 1.0

Other Economic Indicators

Population (Ths) 809.3 814.2 819.2 823.5 828.0 832.6 837.1 841.6 846.2 850.4 854.6 858.5 862.5 Pct Chg Year Ago 2.7 2.7 2.6 2.4 2.3 2.3 2.2 2.2 2.2 2.1 2.1 2.0 1.9 Labor Force (Ths) 370.1 373.2 377.1 380.0 382.1 383.3 384.2 384.8 385.4 386.0 386.7 387.3 388.1 Pct Chg Year Ago 4.1 3.3 4.0 3.6 3.2 2.7 1.9 1.3 0.9 0.7 0.6 0.7 0.7 Unemployment Rate (%) 2.5 2.7 3.1 3.5 3.9 4.4 4.8 5.1 5.2 5.3 5.4 5.3 5.2 Total Housing Starts 14661.9 12362.1 11768.4 10448.2 9876.8 9429.4 9332.0 9079.6 9118.5 9213.4 9351.2 9470.6 9570.9 Single-Family 11031.1 8755.4 7741.6 6631.4 6026.8 5670.9 5527.6 5456.2 5459.8 5516.2 5598.0 5700.7 5746.0 Multifamily

3630.8 3606.7 4026.8 3816.8 3849.9 3758.5 3804.4 3623.4 3658.7 3697.1 3753.2 3769.9 3824.9

PROFILES

The Crestview MSA is comprised of Okaloosa and Walton counties and is located in the northwest corner of the state. Crestview is known as the “Hub City” because of the convergence of interstate 1, State Road 85, U.S. Highway 90, the Florida Gulf & Atlantic Railroad and the Yellow River and Shoal River in or near the city.

QUICK FACTS

• Metro population estimate of 272,056 as of 2019 (5-Year Estimate) (U.S. Census Bureau). • Okaloosa County population estimate of 203,794 as of 2019 (5-Year Estimate) (U.S. Census

Bureau). • Walton County population estimate of 68,262 as of 2019 (5-Year Estimate) (U.S. Census Bureau). • Civilian labor force of 140,167 in July 2022 (Florida Research and Economic Database). • An unemployment rate of 2.4% as of July 2022, not seasonally adjusted. This amounts to 3,310 unemployed people (Florida Research and

Economic Database).

OUTLOOK SUMMARIES

The studied economic indicators are predicted to show relatively high levels of growth in the Crestview Metropolitan Statistical Area (MSA). Gross Metro Product for the MSA will come in at $15,845.64 million. The MSA will experience above-average personal income growth of 5.5 percent, and real per capita income will be relatively high in the state at $55,700. The average annual wage will grow at an annual rate of 5.9 percent (the third highest) to $67,500. Crestview’s population will grow at an annual rate of 1.3 percent.

Employment growth is expected to average 1.5 percent, and Crestview will experience the lowest Unemployment rate in the state at 3.5 percent.

The Leisure & Hospitality sector will lead the MSA in average annual growth at 4.2 percent. The Financial sector will follow at 3.1 percent. The Construction and Mining, and Manufacturing sectors will see respective contractions in growth of -1.8 percent and -1.7 percent, respectively.

METRO NEWS SUMMARIES

Miramar Beach property sells for $25M, setting record for most expensive home in Panhandle

• The Premier Property Group announced the $25 million record-breaking sale of a 10.78-acre, compound-style Gulf-front estate in Miramar

Beach. • This is the second time this property broke the record for the most expensive home in the panhandle; it originally sold for $16.1 million in 2020. • Jason White, chief operating officer of The

Premier Property Group has stated that the sale is “indicative of the strength of our market and its continued growth.” Source: NWFdailynews, June 29, 2022

Last three parcels at Mossy Head Industrial Park purchased by real estate development group

• Onicx Group obtained the last available 34 acres of Mossy Head Industrial Park for $1.3 million. • The company plans to construct several buildings in which it will conduct light manufacturing work. • The arrival of Onicx Group will bring the number of businesses to 15 and county officials could conceivably expand the park’s borders in the future. Source: NWFdailynews, June 29, 2022

LiveOak Fiber to Invest $100M in Okaloosa County Fiber Network While Pledging to Create 50 New Jobs

• LiveOak Fiber expects to begin connecting their first customers of their not yet constructed $100 million fiber optic network as early as February 2023. • Residents and businesses within LiveOak Fiber’s network can expect a robust internet service with 10G per second - the fastest speeds in the U.S.

• To construct and operate the network, LiveOak expects to create 50 new jobs in Okaloosa County over the next three years. Source: Business Wire, July 11, 2022

Construction on final Silver Shells tower to begin this summer in Destin.

• St. Kitts, a 13-story condominium developed by

Sandestin Development LLC, will be the sixth and final tower at Silver Shells Beach Resort. • St. Kitts will offer 70 units with prices ranging from $1.4 million to $3.5 million. About 30% of the units have been reserved. • The tower will feature three and four-bedroom units ranging from 2,380 square feet to 4,540 square feet. Source: NWFdailynews, July 15, 2022

JPMorgan Chase Simplifies Affordable Housing Financing

• JPMorgan is developing a 72-unit affordable housing development in Fort Walton Beach called Shoreline Villas. • The bank is providing $10.8 million in equity alongside a $11.9 million construction loan that will convert into a $5.2 million permanent loan to develop the project. • JPMorgan Chase is also developing several other affordable housing projects across the country strengthening the relationship between their commercial banking and investment banking teams. Source: Commercial Observer, August 1, 2022

Destin, Okaloosa Co. spending $16M for public beach property

• Okaloosa County Commissioners approved the funds along with the city of Destin to buy 336 feet of gulf-front property known as Tarpon

Beach to be used as public access. • $10 million is coming from the Tourism

Development Council tax funds in which the

City of Destin will receive $1.6 million each year from its 12.5% share of County funds. • Currently, the county and Destin are also buying shore at Crystal Beach. The total for both projects is $32,500,000 gaining nearly 600 feet of public access. Source: WKRG, August 18, 2022

Long Term Outlook for Crestview-Fort Walton Beach-Destin, FL August 2022 Forecast

2017 2018 2019 2020 2021 2022 2023 2024 2025

Personal Income (Billions $)

Total Personal Income

13.7 14.7 15.7 17.0 18.7 19.5 20.2 21.0 22.1

Pct Chg Year Ago Wages and Salaries

6.9 7.1 7.0 7.8 10.3 3.9 3.5 4.3 5.1 6.4 6.7 7.3 7.7 8.8 9.7 9.9 10.2 10.5 Nonwage Income 7.4 8.0 8.5 9.3 10.0 9.8 10.3 10.9 11.6 Real Personal Income (12$) 13.4 14.1 14.9 15.9 16.8 16.5 16.5 16.9 17.5 Pct Chg Year Ago

6.4 4.7 6.1 6.5 5.9 -2.2 0.2 2.5 3.2 Per Capita Income (Ths) 50.5 52.9 55.4 58.9 63.8 65.5 66.9 68.7 71.5 Real Per Capita Income (12$) 49.4 50.6 52.5 55.1 57.3 55.4 54.8 55.3 56.6 Average Annual Wage (Ths) 49.4 50.4 53.1 57.2 61.9 67.0 69.0 71.9 74.1 Pct Chg Year Ago

2.1 2.0 5.5 7.7 8.2 8.2 3.0 4.1 3.1

Establishment Employment (Place of Work, Thousands, SA)

Total Employment 112.9 115.6 118.3 116.1 122.3 125.3 124.7 122.9 123.4 Pct Chg Year Ago

1.9 2.4 2.3 -1.8 5.3 2.4 -0.5 -1.4 0.4

Manufacturing Pct Chg Year Ago

3.3 3.0 3.2 3.4 3.4 3.5 3.4 3.2 3.1 -6.9 -7.4 4.4 8.7 -0.9 1.7 -2.3 -5.5 -2.6

Nonmanufacturing Pct Chg Year Ago Construction & Mining Pct Chg Year Ago

109.6 112.6 115.2 112.7 118.9 121.8 121.3 119.7 120.3 2.2 2.7 2.3 -2.1 5.5 2.5 -0.4 -1.3 0.5 6.6 6.9 6.9 7.0 7.3 7.4 6.9 6.5 6.3 2.4 4.7 -0.2 1.3 4.4 1.9 -6.6 -6.7 -2.9

Trade, Trans, & Utilities Pct Chg Year Ago

20.5 21.1 21.2 20.5 21.4 22.2 21.8 21.0 20.3 2.3 2.8 0.5 -3.3 4.8 3.4 -1.5 -3.9 -3.0

Wholesale Trade Retail Trade Trans, Wrhsng, & Util Information Pct Chg Year Ago

1.6 1.7 1.8 1.7 1.8 2.0 2.1 2.1 2.1 16.9 17.2 17.1 16.5 17.1 17.6 17.2 16.3 15.6 2.0 2.1 2.3 2.3 2.5 2.5 2.5 2.6 2.6 1.1 1.2 1.3 1.3 1.3 1.5 1.4 1.3 1.3 14.9 6.5 4.8 -1.3 3.7 10.5 -0.9 -6.9 -0.2

Financial Activities

6.7 7.0 7.1 7.0 7.5 7.6 7.7 7.8 8.0 Pct Chg Year Ago 7.4 4.5 2.3 -2.3 7.6 1.2 2.2 1.3 1.9 Prof & Business Services 15.7 17.0 17.9 18.5 20.4 20.7 19.3 17.6 17.8 Pct Chg Year Ago

1.5 8.3 5.4 3.0 10.5 1.3 -6.5 -8.9 1.0

Educ & Health Services Pct Chg Year Ago

11.9 11.9 12.5 12.3 12.4 12.8 13.1 13.6 13.8 1.0 -0.3 4.8 -1.6 1.4 3.1 2.3 3.8 1.4

Leisure & Hospitality Pct Chg Year Ago Other Services Pct Chg Year Ago

21.8 22.3 22.6 20.7 22.5 23.2 23.7 24.4 25.0 3.7 2.2 1.5 -8.6 8.9 3.1 2.0 2.9 2.6 4.9 4.8 4.9 4.8 5.0 5.2 5.2 5.4 5.6 -4.6 -1.7 2.3 -1.5 4.1 3.6 -0.1 3.8 5.1

Federal Government

8.7 8.7 8.9 9.2 9.3 9.5 9.9 9.8 9.7 Pct Chg Year Ago 0.0 0.6 2.1 3.5 1.3 1.8 4.2 -0.7 -1.1 State & Local Government 11.8 11.8 11.9 11.6 11.7 11.8 12.2 12.3 12.3 Pct Chg Year Ago

1.9 -0.1 1.3 -2.3 0.4 1.1 3.2 0.9 0.2

Other Economic Indicators

Population (Ths) Pct Chg Year Ago

271.9 278.0 284.2 288.5 293.7 297.2 301.2 305.9 308.9 2.2 2.3 2.2 1.5 1.8 1.2 1.4 1.5 1.0 Labor Force (Ths) 123.4 125.3 127.7 127.6 132.8 134.9 137.4 137.3 137.3 Percent Change, Year Ago 1.1 1.6 1.9 -0.1 4.1 1.6 1.8 0.0 0.0 Unemployment Rate (%) Total Housing Starts Single-Family Multifamily

3.6 3.1 2.8 6.1 3.4 2.5 3.4 4.1 4.0 2400.2 2194.0 3170.9 2949.8 3762.9 3051.8 2125.8 2124.8 2198.9 2083.7 2064.2 2364.5 2419.0 3353.2 2579.1 1690.3 1680.4 1744.9 316.5 129.8 806.5 530.8 409.7 472.7 435.6 444.5 453.9