Florida’s Growth Prospects Tied to Sustainability Planning

Florida’s economic future depends on how the state addresses sustainability challenges in its two most prominent industries: real estate and tourism. An economic analysis published by Tikkun Economic Consulting argues that Florida’s next phase of growth will favor regions that integrate environmental and social considerations into core business strategies rather than treating sustainability as an afterthought.

Economic Context

For decades, gross domestic product has served as the primary measure of economic progress. However, modern economic growth increasingly recognizes that environmental health and social stability support long-term economic strength. Sustainability is no longer viewed solely as a cost but as a driver of innovation, infrastructure efficiency, job creation, and investment.

California provides a relevant comparison. Over the past 15 years, the state has invested heavily in clean energy, which now powers nearly two-thirds of its electricity needs. According to the International Monetary Fund’s 2024 World Economic Outlook, California’s economy has grown faster than major global economies, including the United States, Japan, China, and Germany. The data challenges the assumption that economic growth and sustainability are mutually exclusive.

Florida’s Economic Drivers

Florida’s economy is primarily driven by real estate and tourism. Real estate, including rental and leasing, contributed approximately $265.5 billion to the state’s gross state product in 2024. Tourism generated $133.6 billion in economic activity, about 8% of Florida’s GSP, with the state reaching a record 142.9 million visitors in 2024.

Both sectors face growing sustainability pressures from demand. Consumer preferences, population growth, and investor priorities increasingly shape what types of housing, infrastructure, and services are developed and financed.

Changing Real Estate Demand

The real estate sector is experiencing a shift in buyer and investor expectations. Consumers increasingly demand energy-efficient features, are willing to pay premiums for sustainable and certified properties, and place greater value on health, well-being, and access to renewable energy.

Buyers also evaluate properties based on community amenities, green spaces, efficient transit options, and climate risk. Long-term resilience has become a more prominent factor in investment decisions, particularly in Florida where hurricane risk and rising insurance costs affect property values and operating expenses.

For developers and property owners, these trends suggest that properties built or retrofitted with sustainable features may maintain stronger demand and command higher prices than comparable properties without them.

Tourism Sector Trends

The tourism sector is also responding to changing consumer behavior. Data from 2025 shows that 53% of tourists now consider the social and environmental impact of their trips when making travel decisions. European visitors, Florida’s largest overseas market, increasingly opt for greener transportation, pay more for eco-friendly accommodations, and support environmental or social conservation projects.

These preferences affect how hotels, resorts, and attractions position themselves in the market. Properties that integrate sustainable practices may have a competitive advantage in attracting specific segments of travelers.

Regional Adoption of Sustainability Policies

Among Florida’s 67 counties and 411 municipalities, only about 20% have implemented significant climate-focused policies. The analysis suggests that Florida’s next wave of growth will favor regions that anticipate market changes rather than react to them after the fact.

Strategic decisions in energy, water, transportation, and land-use planning will determine whether communities can sustain long-term growth. Regions that embed sustainability into planning may benefit from lower long-term costs, greater resilience to climate events, and stronger public trust.

Business Implications

For Florida’s real estate developers, property managers, and investors, the data points to a shift in market expectations. Properties that align with sustainability trends may perform better over time, while those that do not may face challenges attracting buyers or tenants.

The financial implications extend beyond initial construction costs. Energy-efficient buildings have lower operating expenses, which improves net operating income and property valuations. Properties with sustainable features may also benefit from lower insurance premiums and stronger tenant retention.

Developers planning new projects should consider how sustainability factors into project feasibility, financing, and long-term returns. Investors evaluating acquisitions should assess whether properties meet evolving market demands and whether retrofits or improvements would increase value.

Planning for Long-Term Stability

The analysis concludes that Florida’s next phase of prosperity will not come from short-term expansion alone but from deliberate choices that integrate economic growth with environmental and social considerations. Policymakers, business leaders, and communities that adopt forward-looking strategies may gain advantages, including lower costs, greater resilience, and stronger market positions.

Financial Strategy for Sustainable Real Estate

Integrating sustainability into real estate projects requires careful financial planning. From evaluating the return on investment for energy-efficient systems to accounting for long-term operating cost savings, developers and investors need clear data to make informed decisions.

At James Moore, we work with real estate professionals to address the financial and tax implications of sustainable building practices. Whether you’re planning a new development, evaluating property improvements, or analyzing acquisition opportunities, our team provides the accounting and advisory support you need to assess costs, benefits, and long-term value.

Connect with our real estate team to discuss how we can help you address the financial considerations of sustainable real estate development.

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