February 24, 2021
Florida study: $5 billion return on $423 million affordable housing investment

Florida Trend Real Estate

Florida study: $5 billion return on $423 million affordable housing investment

| 2/8/2021

Florida study: $5 billion return on $423 million affordable housing investment

Gov. Ron DeSantis’ proposed $96.6 billion Fiscal Year 2022 (FY22) budget recommendation fully funds affordable housing programs at $423.3 million, which a study released Tuesday maintains will generate $5 billion in economic benefits statewide. “An Economic Analysis of the Florida Housing Programs,” produced by the Regional Economic Consulting (REC) Group for the Sadowski Coalition, analyzed the economic impact of using affordable housing trust funds solely for affordable housing — a rarity in Florida until this year — and determined every $1 in housing trust funds spent on housing returns $1.40 in revenues for state and local government coffers. [Source: Center Square]

Are we trapped in another housing bubble? A rapid rise in home prices has some experts worried

In the midst of a raging COVID-19 pandemic, with millions of Americans still out of work and facing the possibility of eviction and foreclosure, the United States is experiencing a real estate boom the likes of which it hasn't seen in 15 years. Home prices are rising practically everywhere. From Augusta, Maine, to Phoenix and from Sarasota, Florida, to Aberdeen, Washington, prices are up by double digits. [Source: USA Today]

Home insurance benefits could shrink to head off the ‘spiral towards collapse’

Florida’s home insurance market is “spiraling toward collapse,” a newly released study warns. You can help it avoid that fate by starting to save money to pay a share of your next roof replacement. To reduce financial incentives for lawyers to sue them and prevent consumer rates from skyrocketing further, insurers are pushing for changes to state laws that would include no longer being required to pay the full cost to replace damaged roofs. Lawmakers are debating surprising new data that illustrates the price consumers are paying for rampant insurance litigation. [Source: South Florida Sun-Sentinel]

Sizzling hot Southwest Florida real estate market faces lack of inventory

Real estate sales in most of the markets in the region outpaced the statewide trend in 2020, with the Naples-Immokalee-Marco Island market leading the way. Single-family home sales in Naples grew by 24% on a unit basis, according to MSA-level data provided by Florida Realtors. That’s more than quadruple the statewide growth rate of 6%. And those homes were not purchased cheaply, as the Naples median sale price reached nearly $500,000 (vs. $290,000 statewide), up 15% from last year. [Source: Business Observer]

For the first time in years, it’s cheaper to rent in Miami than in Fort Lauderdale

It’s cheaper to rent in Miami than in Fort Lauderdale, thanks to a glut of apartment units in the Magic City. Miami’s median rent slid by 9.1% from January 2020 to January 2021, while Fort Laudedale’s median rose by 3%, according to the latest national rent report by the rental listing company Zumper. The result: Miami’s median is at $1,600 per month for a one-bedroom unit, versus $1,690 in Fort Lauderdale. [Source: Miami Herald]

STAT OF THE WEEK
$140 million
A once-vacant oceanfront lot in Palm Beach, FL, that sold for $37 million in 2017 now boasts a brand-new home. And given the locale, it’s no surprise that the finished product is now Florida’s most expensive home. Listed for a whopping $140 million, the mansion has toppled the long reign of the $115 million Ziff family compound in nearby Manalapan, FL. [Source: SFGate]

ALSO TRENDING:

› Development boom in Super Bowl city: Tampa reaches for its real estate moment
While Jeff Vinik, Bill Gates and Ian Schrager didn't suit up on Sunday for Super Bowl LV, the trio are key players in a $3.5 billion mixed-use project set to transform the host city’s downtown waterfront. And with residential sales buoyed by a Florida market that has seen buyers move south for the climate, room, lighter taxes and less stringent Covid regulations, Tampa has attracted a crowd that will stay long after the Big Game.

› Sarasota real estate firm closes $3.49 billion in sales in 2020
Michael Saunders & Co. reported $3.49 billion in annual sales volume in 2020 with 24.12% market share in the luxury market and 12.38% in the overall, all-price-point market. Following a strong start to 2020, the residential real estate market came to an abrupt halt due to the pandemic and shelter-in-place orders. It then experienced a robust rebound later in the year, according to a press release.

› Ocean Drive’s Tides Hotel is facing foreclosure. It could end up with a new owner.
The dramatic tourism downturn caused by the COVID-19 crisis could soon bring new owners to The Tides Hotel, a South Beach landmark closed since 2017’s Hurricane Irma. Safe Harbor Equity, the Miami Beach-based private equity firm that owns the hotel’s debt, started foreclosure proceedings on The Tides Hotel South Beach this week after acquiring the hotel’s debt from Ocean Bank in January.

› Homebuyers from Tampa to Naples increasingly arrive from new states
Real estate agent Jeff Shelton spent a recent week with two buyers — one from Chicago and one from California — who sought to relocate to Florida. How Shelton spent his week is representative of what’s happening more broadly on the west coast of Florida: traditional feeder markets in the Northeast and Midwest, like Illinois, Ohio, Pennsylvania and New York, still bring buyers to the area, but of late states from California to Texas and many in between are also becoming prevalent sources of buyers.

Tags: Real Estate eNews

Previous Real Estate Updates:

Real Estate Video Pick

'House of Budweiser' under contract in Lake Worth for over $100,000
'House of Budweiser' under contract in Lake Worth for over $100,000

It's called the 'House of Budweiser,' now under contract in Lake Worth for just over $100,000. A U.S. Navy Veteran covered the house with thousands of cans of beer he drank. When you walk up to unit #102 you see some Budweiser wind chimes and you even see a Budweiser sign on the wall. But that's nothing until you open the door.

Real Estate Videos | Viewpoints@FloridaTrend

Ballot Box

Have you received the COVID-19 vaccine yet?

  • Yes, I have received the first dose of the vaccine
  • Yes, I have received both doses of the vaccine
  • No, I am still waiting for an appointment
  • No, I am not eligible at this time
  • Other (Please share your comments in the comment section below)

See Results

Florida Trend Media Company
490 1st Ave S
St Petersburg, FL 33701
727.821.5800

© Copyright 2021 Trend Magazines Inc. All rights reserved.