Risk Factors in Southwest Florida Development

“There is a dramatic shortage in skilled workers,” says Michael Reitmann of the Lee County Building Industry Association.

“Labor is a significant issue,” agrees David Ellis, the executive vice-president of the Collier Building Industry Association. “In Collier, because we are moving so briskly, we have an ongoing challenge to train and prepare folks to work on the jobs.”

And labor is affected by land. “The availability of land, and the cost of the available land,” says Ellis. “Land prices continue to escalate, [limiting] the affordable housing for workers in Collier.”

Reitmann sees it too. “Land is becoming scarce. That’s why you see an out migration from Collier to Lee.”

The amount of development is not the only factor in the land shortage, explains Ellis. “It is exacerbated also by increasing environmental kinds of scrutiny in what can and can’t be done.”

Reitmann concurs. “Now when you look at environmental and regulatory issues, the lawsuits, with panthers, manatees — all these things add to the cost of development and building.”

Both agree that other factors outside of local control — the economy, interest rates, the availability of money — may pose challenges for developers. But neither is willing to sound any death knells.

“Between Collier and Lee,” says Reitmann, “Collier is number one, and Lee is number three in the Hotness Index as reported by the U.S. Housing Markets reporting group.”

Ellis agrees. “The industry continues to move along with a real brisk pace,” he says.