The variety of homes in Florida is astonishing. From modern 3 bedroom bungalows to condos in towering buildings to quaint beach houses to spacious multi-million dollar mansions, you can have your dream life, walk the beaches, shop for hours, and never have to shovel snow. For a lot of buyers, that’s a compelling value proposition.
With more babyboomers hoping to retire somewhere nice, and who have been holding onto their old home because they have nowhere to go, they will find Florida a solid asset as a home or real estate investment.
PWC in its new major US housing report, names Miami/Fort Lauderdale/West Palm Beach as the 3rd highest target destination from migrating people from other cities in the US.
Whether you’re buying a second home/vacation home or you’re considering moving to warm, sunny Florida, here are a few things to consider:
A lot of people love Florida and some don’t like it at all. If you could live here during the winter only, as many snowbirds from New York, Toronto, Montreal, Boston, Philadelphia, Chicago, and Washington do, buying a home/condo might be a no brainer. All you’d have to focus on is finding a home at a good price.
Florida’s economic performance continues in 2018 and 2019 will shine as will the US economy. This is why the sunshine state is attracting so many new residents and home buyers. Orlando’s population growth was 18% over the last and disposable income growth over the last 5 years was an amazing 12.8%.
South Florida’s population hit 6 million for the first time, and Miami Dade hit 2.7 million residents. Tampa Sarasota region was in the top 10 nationally for population growth and Orlando saw 48,000 new residents arrive.
That’s generated strong demand for housing and rental units in South Florida.
As reported in Tampabay.com, the Florida economy will reach $1 Trillion this year and $1.074 trillion in 2019. Florida is an important state having 5% of the US economy but 10% of new jobs. Tourism and housing were the key industries.
Hurricane Irma and the destruction of the citrus crop have suppressed the Florida economy and the state has difficulty attracting skilled workers. Wages do lag, yet real estate in Florida overall is very reasonably priced. Only Texas is a better bargain.
With the Florida economy rolling along nicely, there’s no reason to believe there is a downside to buying property in the Sunshine State. And sunshine is a key benefit for most buyers here.
Interest in Orlando and Tampa real estate has been particularly strong and that’s likely due to the lower prices. Even homes in Boca Raton and Fort Lauderdale are half the price as those in Miami.
However the economies in Tampa and Orlando are holding their own and drawing in new residents due to lower than expected prices on condos and homes.
According to Zillow, home prices in Florida average $216,000 which is up 7.3% from last year. They’re expected to rise more slowly in 2018 at 2.5%. By the end of 2018, the average home price will be $221,000. That has to look good to home sellers in Boston and New York, as well as Canadian buyers in Toronto, who have home values that rival the highest in Miami.