Florida's Population Boom Helps Fuel Demand for Dirt Bonds
- Sunshine State may gain 6 million more residents by 2040
- Land-backed debt returned 8% in 2017, most in three years
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Florida’s population boom and a shortage of housing are fueling demand for local municipal debt sold for neighborhood developments.
Community development district bonds, or CDDs, are sold in Florida to help finance home building projects. The debt, called dirt bonds, tends to offer higher yields as investors take on the risk that demand for housing may wane. That threat may be decreasing in Florida as its population is expected to swell nearly 30 percent by 2040 following a 9 percent increase since 2010.