How much does I-4 Construction Affect Real Estate Values?

For anyone who has lived in Central Florida since 2014, they are very well aware of the Ultimate I-4 Project, and the construction that has engulfed a 21 mile stretch from West of Kirkman Road near Universal Studios in Orange County to the East of State Road 434 in Seminole County. Driving this stretch of road currently can bring on frustrations for many drivers and being alert is very important for the safety of all who drive this highway.

This project began in early 2015 and is expected to be completed in 2021, but that date is fluid. The project timeline is posted on the Ultimate I-4 website, linked below, and you can sign up for text/email alerts to keep up with the latest updates.

This project will add two new toll roads, Express Lanes in each direction of I-4, replacing more than 140 bridges, reconfiguring 15 major interchanges and reconstructing the entire roadway while increasing the posted speed to 55mph.

https://i4ultimate.com/




So, the question posed here is regarding how much this construction affects real estate values of the properties near this project? 

Earlier this year, on February 26th, 2019, WFTV a local broadcaster reported a homeowner claiming construction damaged his 1920's home with cracking throughout the home. This is not the first homeowner and surely won't be the last before the construction is finished. Especially with the Orlando Sentinel reporting that as of May 2019, the project is nearly 9 months behind the original completion target date. 

But beyond the effects of ongoing construction, what will the future hold for residential and commercial real estate near this interstate? Let's first look at the fact that this section of interstate runs through two counties and multiple cities where it touches homes, businesses, government buildings, and tourist areas. This is a broad range of property types and the data to examine would be vast and not that important to the average person, but let's focus on that average person. 

That person may own a home that is less than a mile from the interstate, so what is he or she thinking about? Increased traffic or better traffic flow? More people driving near their home or less because an existing exit is now re-routed? What about the increased noise? It is being reported by the FDOT that there will be sound barriers (concrete walls) built to reduce the noise. A majority of property owners adjacent to the proposed barriers were in favor according to an FDOT survey. All in all, there are negatives and positives to this project where real estate is involved, and can only be evaluated on a case-by-case basis. 

As we progress towards the completion of this project, we as real estate professionals will be tasked to determine some of these home values in the near future or now and the new I-4 interstate will have an impact. To what extent of the impact, that is truly yet to be seen but if a property owner has questions about their investment value, we suggest reaching out to discuss your concerns. Your property may be increasing in value regardless of this project, because of the growth that it promises to bring. It is easy to take the negative road but let's focus on the positives with the knowledge of how things look now. 

Lastly, on a humorous note, if you admire the way that human beings like to express themselves online, then check out the twitter feed for the hashtag, ultimatei4. It will give you a little laugh and an occasional nod in agreement. Perhaps, the people of Central Florida are just showing their love for this project in their own special way. 

https://twitter.com/hashtag/ultimatei4

If you have a comment about the Ultimate I-4 project or want to chat about your property values, I invite you to comment below. 

I encourage you to Reinvest in Orlando Real Estate today! 
Visit my website for more information about my real estate services: 

https://www.reinvestinorlando.com/

Reference Links:

https://www.wftv.com/news/local/homeowner-claims-i-4-ultimate-construction-damaged-house/925552636

https://www.orlandosentinel.com/news/transportation/os-ne-i4-construction-delay-mounts-20190508-z5iw65ffjzd23k5cimfukbq4em-story.html

https://i4ultimate.com/project-info/special-features/#sound-abatement




Copyright 2019 Theresa M. Kraa, REALTOR®
Associate of Premier Sotheby's International Realty.
All data references are linked and credited within the content of this blog post. 
All rights reserved, Any opinions expressed in this publication are that of the opinion of the editor, not of the brokerage of record and all data is deemed reliable with sources provided within the content.

© 2019 Premier Sotheby’s International Realty. All rights reserved. This material may not be reproduced, displayed, modified or distributed without the express prior written permission of the copyright holder. Premier Sotheby’s International Realty is a holding of The Lutgert Companies. Sotheby’s International Realty and the Sotheby’s International Realty logo are registered service marks used with permission. Each office is independently owned and operated. Equal Housing Opportunity.

Brief Overview of the 2018 Land Market Survey by RLI and NAR

If you are not familiar with this annual survey conducted each fall by the joint venture between the REALTORS® Land Institute and the National Association of REALTORS® Research Group, let me give you a brief overview as well as access to the full report, and further information from the organizations. 

This survey is used as a tool for real estate land professionals in all sectors of the business to use for an information resource to better inform their client of market conditions, throughout the country and how to relate to their own local market. The survey is designed to reveal current trends and state of land markets across the United States, which can show growth and negative patterns to be aware of that may affect local economies. 

As noted on the RLI website where this survey is posted, the 2018 Land Markets Survey showed sustainable growth in both national land sales and land prices. Respondents reported a gain of 2% year-over-year increase in land sales and a 2% increase in land prices between October 2017 and September 2018 period being measured. Although the survey indicated an increase in both measurements, overall growth in the market was at a slightly slower rate than the previous year. This is likely due to many factors that will affect a national and local market that cannot be ignored. Factors such as interest rates, negative impacts of tariff/trade wars (that can be traced for many years) and commodity pricing. The slowdown of the land market can be attributed to the modest gains across residential land sales (4% to 5%,) commercial land sales (3% to 4%) and agricultural land (1% to 2%) compared to previous years. One highlight of the survey is the decrease in the "days on market" with typical results being on average of 90 days compared to typical 95-100 days in past surveys. Please note that this is gauged as a national average as market days will be different based on the property type and local markets. 

To follow along with any references covered in this overview, please feel free to scroll through the image slider below, which is the full report. 

2018 Land Markets Survey from REALTORS® Land Institute

So, if you are wondering what the state of Florida's land markets reveals in this survey, let's cover that. Let's start with page 5 of the survey, which outlines the region where Florida fall, as noted as REGION 10 for the Southeast Area of the United States. As noted on page 10, our region along with other regions, #7, #8 & #9 accounted for 80% of the U.S. land sales in the survey time span. These regions represent many different land types that are crucial to our nation's economic table such as agricultural, urban growth of residential land and recreational land use. 

Now, let's skip to page 23 will further show the level of growth specific to our Region 10; indicated as an increase from 16% to 18% from 2017 to 2018, just being beaten by Region 8 by a small percentage. Now onto page 25, showing the property types for our region's sales, which is dominated by Residential at 32%, then Recreational at 23% followed by Commercial at 14% which should be no surprise to anyone who follows the economy of Florida as our year-to-year growth in population increases and has no signs of stopping anytime soon. It is also important to notate that Florida indicates it has sales in all eight categories of land types surveyed, which is the ONLY region that shows this in the report. Way to Go Florida!! 

Continuing on... just a little more to cover. So we move forward to pages 34 & 35 where the survey reveals what has affected land sales over the past few years. Florida respondents to the survey reported that zoning regulations are high on the list of difficulties in the process of land sales, which should not be a surprise to anyone who works or lives in Florida. Referencing my previous comment regarding our continuous growth in population requires municipalities to constantly review their zoning rules along with their growth regulation for future planning. This can definitely hinder the process of selling land which is a part of doing business in this state. Also, one cannot rule out the fact that our landscape is changing with the ever-growing amount of hurricanes and storms that affect our entire state, which will cause our cities to seek more regulation for better construction standards and where these structures are built. This is highlighted again on page 35, on the 6th, 7th, and 8th bullet points as issues reported by respondents. 

In closing of this blog post, let's look toward what 2019 holds for our entire state as well as the Central Florida Land Market. In reviewing this report covering 2018, my takeaway is that our state's market is steadily rising but not too quickly. Our local market, specific to the Orlando area, the growth is showing to be steady, which is also positive. 

I will be expanding further on this data in my future posts, where I will highlight the market data specific to zip codes showing that we are on track for a steady market. Just because there are no reports of significant growth in our local market, this is no indication of what is to come. My reports (coming soon) will cover the first half of 2019 compared to the same time period of 2018 and since we have a lot of positives in our market at the moment, the end of year reports will show our stability and strength. I look forward to reviewing this year-end data myself as well as sharing it with you, my readers. 

I hope that you have gained some knowledge from my post concerning the 2018 Land Markets Survey and my insight as provided.  I welcome your comments and feedback, as we only learn when we are open to the conversation. 

I encourage you to Reinvest in Orlando Real Estate today! 
Visit my website for more information about my real estate services: 
https://www.reinvestinorlando.com/

Reference Links:

https://www.rliland.com/

https://www.rliland.com/about-realtors-land-institute/land-markets-survey/




Copyright 2019 Theresa M. Kraa, REALTOR®
Associate of Premier Sotheby's International Realty.
All data references are linked and credited within the content of this blog post. 
All rights reserved, Any opinions expressed in this publication are that of the opinion of the editor, not of the brokerage of record and all data is deemed reliable with sources provided within the content.

© 2019 Premier Sotheby’s International Realty. All rights reserved. This material may not be reproduced, displayed, modified or distributed without the express prior written permission of the copyright holder. Premier Sotheby’s International Realty is a holding of The Lutgert Companies. Sotheby’s International Realty and the Sotheby’s International Realty logo are registered service marks used with permission. Each office is independently owned and operated. Equal Housing Opportunity.