In the times of uncertainty and market rebuilding under the influence of external shocks, it is particularly important to identify the trends that will stay in force for at least a year. Professional brokers from Pam & Toni Team named the following 7 trends relevant for the Florida real estate market.
- Insufficient housing stock. The demand for homes in Florida has been consistently higher than the supply, and now the developers are additionally cutting down construction due to growing mortgage rates.
- Next-generation buyers. 130 millions of millenials and zoomers across the country are entering the age when people are beginning to get their own homes.
- Wealth transfer. Over the next decade, over $10 trillion will change hands in the USA.
- Inflation. Even if inflation remains at a relatively low level of 2%, new buildings will cost more.
- Increased number of buyers. Wealthy baby boomers often purchase several homes. Direct investment firms are also actively buying residential properties in Florida that promise a high yield.
- Replacement. Many existing homes need repair or replacement due to wear and the threat of hurricanes. Considerable resources will be spent on that, which may affect new construction.
- Migration. Florida has the fastest growing population in the USA. People move here for the sake of a nice weather and tax benefits.
Taking the above trends into consideration, investors can make the appropriate decisions when selecting Florida properties in 2023.