In 2021, a mysterious Russian spent $140 million (in cash!) and bought the most expensive real estate in Florida. This mystery buyer visited a house on the coast, and less than a day later concluded a deal, fully covering the cost of the property. Only once in the world was there such an unprecedented purchase. In 2020, American entrepreneur Jeff Bezos, the founder of Amazon, spent $165 million on a residential unit in Los Angeles. The house, acquired by an unknown Russian, has an area of 1,950 m2 and was built by the famous architect William M. Boyle. This building has unique advantages e.g., floor-to-ceiling windows, polished stone floors, a wine cellar and a private beauty salon.
Content:
- So, who is he, a real estate buyer in Florida today?
- What does the cost of an apartment in Florida depend on?
- Additional factors affecting the price of an apartment
- What types of housing does Florida have?
- The best cities in Florida to live in
So, who is he, a real estate buyer in Florida today?
If the real estate market in Florida became less active (although the demand from tenants continued to grow), during the COVID-19 pandemic, it is rapidly reviving. In 2020, the demand for housing decreased, but in 2022, it became higher from month to month.
Modern buyers have new needs and preferences. They are increasingly choosing spacious houses with open land plots. As many freelancers moved to the state at the height of the pandemic, the demand for homes with separate work areas has also increased.
Foreign nationals find Florida appealing for many reasons, including the attractive tax policy. There’s no income tax in the state. In addition, many expats move here due to the difficult economic and political situation at home. Foreign buyers purchase low-rise housing, i.e., townhouses, villas, etc. Noticing the growing demand for such properties, developers began building them more often, giving up on the multi-storey residential complexes for a while.
However, development companies have not forgotten about those who have received a higher education, got employment and are now looking for their first home. Although after the COVID-19 pandemic, during the economic recession, there was a new trend, with some young people under the age of 30 returning to their parents' homes, it did not affect everyone. Many people prefer to rent a house with friends. Therefore, the small studio apartments are popular with young people.
Thus, the highest demand for local real estate is from:
- freelancers moving from other states.
- pensioners.
- families with children.
- foreigners faced with a difficult economic and political situation at home.
- wealthy investors.
As a rule, students and young people under the age of 30 are interested in renting housing.
What does the cost of an apartment in Florida depend on?
The value of any property is derived from many factors. About Florida flats, there are the following criteria:
- The size of the locality. In large cities, such as Miami, Jacksonville, and Orlando, flats will cost far more than in small towns and villages.
- Infrastructure. If the district has a prestigious private school, a medical clinic, a wide selection of shops and restaurants, as well as many public transport stops, apartment prices here will be significantly higher than in an area with less developed infrastructure. Even the property tax in the state may vary from street to street.
- The number of monthly payments. Utilities in Florida can be quite expensive. As a rule, the higher the monthly fee is, the lower the cost of the apartment is.
- Repairs in the apartment. The better the repair is, the higher the cost of a residential unit is.
- The area of the flat. Everything is obvious: the larger the area of the apartment, the higher the cost.
Additional factors affecting the price of an apartment
If Florida housing is cheap, it’s most likely located in a bad district - a public school with a bad reputation and dysfunctional neighbours on its territory. These are neighbours with a criminal past, harmful habits, the unemployed, immigrants who own fighting breed dogs, families with multiple children, and the poorly educated. E.g., Ybor City in Tampa is a lively area, popular with tourists for its vintage shops and a variety of gourmet restaurants, but potentially dangerous to walk around at night.
Potential home buyers should be prepared for such situations and check the security of a particular residential block when choosing a property. Many Russians imagine the United States to be an idyllic country with a high standard of living and security. However, the bad neighbourhoods in the big cities in Florida may be more unfavourable than in the small towns. The streets are full of garbage, locals throw waste out of the windows, music plays loudly at night, there are no public transport stops, etc. After moving to such areas, people may face unemployment, poor-quality education, and other negative consequences. Real estate in these neighbourhoods is inexpensive but is getting cheaper due to the outflow of the solvent population.
What types of housing does Florida have?
The USA’s real estate is divided into condominiums, cooperatives, and private houses.
A condominium is a residential building offering the cheapest housing. The area of these properties is about 30 m2. They are located in bad districts and cost an average of $350,000. The location may also be convenient for students: e.g., not far from the University of Florida. These districts were built for students, but over time the demographic situation has changed with university graduates moving to other places, and the area consequently turning into a ghetto.
Parking lots in these areas are empty (most residents do not have personal transport), and residential units do not have swimming pools, sports, and playgrounds, or other amenities.
A cooperative is a real estate with an area belonging to the company. The owners of the residential unit are the owners of the shares. The property is managed by the board of the company.
A private house is a real estate, where the buyer can become the rightful owner of the housing and the plot on which it‘s located. The average cost of local homes is $407,000.
The best cities in Florida to live in
The best Florida cities to live in include Tampa, Cape Coral, Orlando, Miami, Gainesville, and Jacksonville. They can boast of a low unemployment rate of 5% (the average unemployment rate in the USA is 6%). This is because there are offices of large companies on their territory offering employment. In many of these cities, the light industry and healthcare enterprises are well-developed.
Before choosing a property in Florida, buyers need to conduct their market analysis and draw conclusions based on real-life information in the state.
