DELRAY BEACH, Fla. – With population growth being the most important factor influencing the demand for real estate in the U.S., Florida is particularly well positioned. Florida is expected to become the nation’s third-largest state by 2011, surpassing New York.

In addition to the numerous newcomers who are becoming permanent residents within this Sunbelt state (estimated by Florida’s Office of Economic & Demographic Research as a “net” population gain averaging nearly 1,000 people per day), other reasons are propelling the remarkable demand and the escalation of real estate values that accompany it.

For one thing, Florida has historically attracted people due to the great weather and ease of traveling, and that’s not likely to stop anytime soon. In addition, Florida is a global destination with access to potential home buyers from all around the world. This means that the state’s single-family home and condominium sales aren’t solely dependent upon the local workforce.

“While Florida’s coastal communities have been predominately inhabited by part-time residents, more and more residents are staying here full time,” noted Mike Donnelly, Division President of Toll Brothers, the nation’s leading builder of luxury homes. The company is actively developing resort-style country club communities with luxury and custom estate homes, as well as townhomes and high-rise condominiums in Florida.

“Second-home residents contribute to our economy. They pay real estate taxes, shop in our stores, dine out and support cultural and sporting events,” Donnelly pointed out.

The estimated 82 million Baby Boomers, born between 1946 and 1964, are entering their peak earning years. With higher discretionary incomes and more free time to travel, they are looking to buy second and third homes. Furthermore, along with Generation X’ers (born 1965-76), they comprise the move-up buyers of the present and the next decade.

Other factors drive demand and prices skyward: the scarcity of available land for development surrounding urban areas, the difficulty for some developers to obtain zoning and permitting (which causes the new home supply to fall short of demand), and low, single-digit mortgage rates.

The need for more residences is further fueled by the high divorce rate, retirees living longer and therefore remaining in their homes longer, as well as the transfer of wealth from the elderly to their heirs who, in turn, may be looking to put the money into real estate.

With the demand for housing being so hot, it comes as no surprise that  developers/builders such as Toll Brothers and others are responding to the needs of prospective purchasers who seek The American Dream “Florida style.”