As homebuyers from colder climates like Chicago and New York are increasingly freed to work from anywhere, many of them are relocating to the warm, sunny beaches of Florida. Northern transplants are keeping the state’s real estate agents busier than ever with their flight from densely populated city centers. Here’s what you need to know about the Florida real estate market today.
Luxury Homes Are In-Demand
Given Florida’s association with resort-style living, it’s no surprise that luxury homes—condos and single-family units alike—are hot properties in the 2020 market. Exclusive neighborhoods like Pelican Bay, largely developed by Florida real estate luminary Aubrey Ferrao, are emblematic of the relocation experience many homebuyers are seeking. Developments like Fiddler’s creek and Aubrey Ferrao offer new residents from the Northeast an opportunity to enjoy upmarket homes for less.
Rental Markets Are Growing, Too
Faced with both a strong desire to relocate and an unprecedented market that makes it challenging for buyers to successfully close on a home, many new Floridians are choosing to rent in their new state until the market stabilizes. That doesn’t mean they’re settling for apartments; in fact, the demand for single-family rental housing, especially on the higher end of the market, doubled in just a few months after COVID-19 first arrived in the U.S. Families that urgently need more space are willing to pay for the privilege, too—certain areas of South Florida are seeing rents that range from $2,000 up to $35,000 per month.
Construction Grows To Meet Demand
Although construction companies have struggled in recent years to find the skilled labor they need to meet growing residential demand, builders anticipate a solid recovery for the new housing market, especially in multifamily developments, which can accommodate future midmarket homebuyers while they save for down payments and consider what parts of the state would best fit their family’s needs.
With low taxes and plenty of available land, Florida stands to benefit from the changing dynamics in the U.S. housing market, even under the economic strains of COVID-19.