Slow Florida Housing Market Fallout: Workers Laid Off From Building Company

The fact that demand for Florida mortgage loans has slowed considerably affects a lot more than just sellers in the state.

For instance, one of the largest home builders in the Southwest Florida housing market is laying off workers as the cool-off in the industry continues.

First Home Builders of Florida will lay off 50-75 construction workers, according to company president Fred Herman. The company is owned by K. Hovnanian Homes. Herman said the company is “adjusting its team to current market conditions.” He says the dismissed workers could be rehired in the future.

The company employs a total of 700 workers, including both construction and office personnel. Overall, many real estate agents and Florida mortgage brokers are also being forced to find new jobs, at least temporarily, as the market remains stagnant.

First Homes has a reputation as one of the biggest single-family home builders in Southwest Florida. Last year, the company closed on 3,000 homes.

Since then, there has been a dramatic change in the national housing market, while the number of building permits issued in Lee County has also gone down. Building industry experts aren’t worried by the layoffs.

“I think this is a typical market cyclical situation and I think any shrewd and astute business person is subject to any investors they have to deal with. So it’s just prudent that you have to adjust the labor market to the conditions of the construction market,” said Michael Reitmann, Vice President of the Lee County Building Association.

In time, Florida mortgage applications should pick back up and the released workers may be hired back again.