Here We Grow Again: Florida Population Booms in 2024

Population growth is seen by many as a key to economic growth. If that is indeed the case, then Florida is poised for good times.

The U.S. Census Bureau projected the nation’s population stands at more than 341 million as the new year begins, a nearly 1% increase from a year ago and almost 3% since the 2020 census. While the growth was primarily driven by rising international migration, a significant driver of the increase came from Florida and its neighboring states in the South.

“At nearly 132.7 million residents, the South is the most populous region,” according to a Census Bureau release. “With a population gain of nearly 1.8 million — a change of 1.4% between 2023 and 2024 — the South added more people than all other regions combined, making it both the fastest-growing and largest-gaining region in the country.”

Florida’s share of that increase totaled nearly a half million new residents and trailed only Texas in the region for largest numeric gains in population, according to the Census Bureau. The Sunshine State trailed only the District of Columbia in percent growth at 2% compared to the District’s 2.2% rate.

In Volusia County, Economic Development Director Lou Paris sees promise in population growth.

“Florida’s rapid growth signals opportunities for Volusia County and the region in general,” Paris said. “An influx of new residents brings fresh talent and increased demand for goods, services and infrastructure. This creates a robust environment for economic growth. Local businesses have the chance to thrive as they cater to a growing population, and entrepreneurs and innovators have fertile ground to launch new ventures.”

It can also provide momentum to economic growth across the region, Paris said.

“This growth also positions the region as a more competitive and attractive destination for larger-scale investments, including infrastructure projects and business relocations,” he said. “It strengthens the workforce pool, enhances the tax base, and fosters opportunities for collaboration across industries, especially in the aerospace industry. Ultimately, this momentum helps to elevate the region’s profile, creating a brighter future for businesses and residents alike.”

In Volusia, Paris said population growth is one of the foundations of a strong and sustainable economy.

“Population growth is a vital driver of the county’s economy, because it fuels demand of goods and services,” he said. “A growing population creates a ripple effect – stimulating virtually every aspect of the economy. Additionally, more residents mean a larger tax base, enabling the county to continue to invest in critical infrastructure, education and public services that improve the quality of life for everyone.”

Paris said the impacts of population growth – increased needs for services from education to transportation and beyond – present challenges as well as opportunities.

“One of the primary challenges we face with population growth is the increased stress on existing infrastructure, such as roads, schools and utilities, which must expand to meet the needs of a growing population.” he said. “This makes smart planning and development critical to ensure our growth is balanced and does not outpace the capacity of essential services.”

That population growth can have an impact on economic development, according to Sara Maxfield, St. Johns County economic development director.

“In general, population growth often leads to economic growth in a region because the greater number of people increases consumption of goods and services and in turn, increases economic activity,” she said. “A larger population invariably translates to a larger labor pool and diversity of skills and talents. This diversity can foster innovations that positively impact the economic and social environment. Our recent population growth here in St. Johns County, along with other factors such as the favorable tax environment and high rated educational resources, makes us particularly attractive to industries looking for new or expanded headquarter locations.”

Maxfield said population growth can present challenges and opportunities to a community that need to be balanced.

“Population growth can put a strain on resources and infrastructure causing frustrations with traffic, housing shortages/affordability, depletion of natural resources and environmental impacts,” she said. “Managing these challenges requires coordinated cooperation and collaboration between public and private sectors to implement flexible and adaptive solutions.”

At the same time, increasing population can also expand the tax base and crate a larger talent pool that drives productivity and economic growth, according to Maxfield.

“A growing population can foster entrepreneurship by leveraging diverse ideas, talents and skills. There are also increased cultural and social opportunities associated with a growing population,” she said.

Florida’s population growth has also spurred economic expansion in Palm Coast, according to Craig McKinney, the city economic development manager.

“The influx of new residents has led to increased economic activity across Florida and in Palm Coast with a surge of increased demand for goods and services, particularly in housing, retail and healthcare—all of which can stimulate local businesses and attract investment,” he said. “It’s also meant increased job creation across many sectors, such as construction, education, healthcare and retail/service industries.”

McKinney said a growing population is an important driver of the city’s economy.

“Population growth is a critical component of Palm Coast’s economic development,” he said. “It creates opportunities for businesses, government, and residents by increasing consumer demand, creating jobs, and broadening the tax base. With that, it’s crucial to manage the growth sustainably to maintain our high quality of life and ensure long-term economic stability.”

With the city anticipating continued population increases, McKinney said there will be issues that need to be addressed.

“The opportunities and challenges that come with a projected 43% increase in the county’s population by 2050 are exciting,” he said. “It all comes down to strategic planning and ensuring a vision with buy-in from the residents, government, businesses and education stakeholders. The key drivers for success will be infrastructure, education, smart community planning and ensuring that we have a diverse business sector. Forward-looking strategies created now will develop this sector and set us up for success in the coming years.”