Florida's Growth and Vertical Development: Understanding the Live Local Act Update

The Florida Premium: How Land Scarcity and Policy Are Driving Vertical Growth in CRE

Florida’s real estate boom isn’t just a headline—it’s a hard economic reality reshaping how developers build. From Miami to Orlando and Tampa to Fort Lauderdale, land scarcity, in-migration pressure, and zoning reforms are creating a development environment where going up isn’t just smart—it’s necessary.

With the Florida Legislature’s recent update to the Live Local Act, the landscape has shifted again. And if you’re in the multifamily, mixed-use, or affordable housing sectors, it’s a shift worth paying close attention to.

Land Is Scarce. Demand Is Not.

In top metros like Miami-Dade, Broward, and Palm Beach, developable land is increasingly hard to find. The surge in out-of-state migration, particularly from high-cost markets like New York, California, and Illinois, continues to drive demand for urban infill and transit-oriented development.

At the same time, developers are contending with elevated construction costs, insurance premiums, and tight capital markets. So where's the opportunity?

In the air.

Vertical development is not just an architectural trend—it’s a market necessity. From mid-rise garden-style conversions to high-rise towers with integrated retail, developers who know how to optimize for height and density are winning.

The Live Local Act Update: What CRE Pros Need to Know

The Live Local Act, Florida’s ambitious workforce housing bill passed in 2023, aimed to streamline zoning for mixed-income housing and supercharge density near commercial corridors.

The 2024 update (SB 328), passed in March and signed into law in April, keeps the spirit of the original legislation intact—allowing for higher-density residential development in commercial zones without local rezoning—but adds several key clarifications:

• Protection for historic districts: Municipalities now have greater control over developments that could impact areas listed in the National Register of Historic Places.
• Clarification on height allowances: Height must not exceed the tallest permitted building within one mile of the proposed site.
• Application timelines: Local governments must process Live Local applications within 90 days—adding predictability for developers.

This legislation is particularly powerful for developers focused on multifamily or mixed-use projects, as it removes major entitlement roadblocks and accelerates timelines in markets that desperately need housing.

Strategic Takeaway: Build Higher, Faster, and Smarter
 

For developers and capital partners looking at Florida, here’s what matters most:

• Density = ROI: With favorable legislation and consistent demand, mid- to high-rise projects pencil better than ever.
• Transit-adjacent is king: Focus on walkable, connected locations with nearby employment and retail nodes.
• Know your zoning overlays: With the new Live Local language, developers can bypass traditional zoning processes—but only if they understand the existing entitlements and restrictions, especially height

The reality is clear: Florida CRE is entering its vertical era. Those who can navigate policy, design smart, and move quickly will capture the upside—especially in a market that shows no signs of cooling.