October 4, 2022
As Florida home prices spike, middle-class residents wonder if they can afford to stay

Florida Trend Real Estate

As Florida home prices spike, middle-class residents wonder if they can afford to stay

| 1/24/2022

As Florida home prices spike, middle-class residents wonder if they can afford to stay

Amid a surge of demand from out-of-state buyers, limited inventory and booming neighborhood redevelopment, the Sunshine State is quickly becoming one of the least affordable places to live in the United States, a trend that is straining new home buyers and renters even as longtime homeowners reap a windfall of equity. Over the past six months, Florida's home prices have risen faster than those of any other state, according to a Washington Post analysis of Zillow data. As housing markets elsewhere have cooled, home prices in Florida have shot up the national ranking. [Source: Washington Post]

Relief or ‘poor tax’? Companies offer an alternative to apartment security deposits for Florida renters

As rents skyrocket, startup companies are touting what they consider to be a helpful solution to hefty security deposits pricing Floridians out of apartments. Instead of forking over an upfront security deposit, tenants can agree to pay a monthly fee — typically about $25. But there’s a catch: The money isn’t refundable at the end of the lease like a traditional security deposit, and renters are still on the hook for damage beyond ordinary wear and tear. [Source: Orlando Sentinel]

Surfside condo collapse drives Fannie Mae to toughen loan standards on older buildings

Buying a condo in an older South Florida high-rise? For people who want to finance their deal, it’ll be getting tougher to take out a loan backed by Fannie Mae or Freddie Mac, the government-sponsored enterprises that make mortgages available to low- to moderate-income borrowers. Reacting to last year’s tragic collapse of the Champlain Tower South in Surfside, Fannie Mae and Freddie Mac, the two companies that back a majority of residential mortgages in the U.S., are scrutinizing deferred condo maintenance issues before approving loans generated by banks and other lenders. [Source: South Florida Sun Sentinel]

Realtor takes to water to show off aSouth Florida mansions

On a recent Saturday afternoon, real estate agent Bonnie Heatzig was escorting her clients, visiting from Washington, D.C., on a tour of luxury properties in Boca Raton. But instead of stepping into her car for the start of the tour, they hopped into her family’s boat for a sunny two hour jaunt around Boca’s waterways and exclusive waterfront mansions. Her clients were all smiles as they chatted about which homes provided the best views and had the most potential to live in. Read more at: https://www.bradenton.com/news/business/article257632768.html#storylink=cpy [Source: AP]

South Florida counties among the hottest commercial markets in the U.S.; they're also less affordable to live in

Miami-Dade County tied with six other markets with populations over 250,000 for having the strongest commercial real estate market conditions in the nation, according to a study released today from the National Association of Realtors. Miami-Dade tied with census metro divisions covering Tampa, and Fort Myers in Florida with the highest index score of 76.The study considered criteria such as job growth, employment, salary growth, inventory absorption, and low vacancies/rent increases in apartments, offices, retail, and industrial. Also scoring 76: Charleston, South Carolina; Durham, North Carolina; Kennewick-Richland, Washington; and Nashville, Tennessee. [Source: South Florida Business Journal]

STAT OF THE WEEK
$90 million
A lot on Miami Beach’s ultra-exclusive Star Island that comes with two separate homes — a historic residence built in 1924 and what the listing agent describes as a “modern masterpiece” — has been listed for $90 million. If the property sells for that price, it will top the recent $75 million sale of another home on Star Island and will set a new record for home sales in the greater Miami area. [Source: South Florida Sun-Sentinel]

ALSO TRENDING:

› Blackstone goes all-in on South Florida affordable housing with over $300M portfolio deal
Blackstone Real Estate Income Trust went all-in on South Florida affordable housing, scooping up more than a dozen apartment communities for more than $300 million. New York-based Blackstone’s trust, through various affiliates, bought 13 properties from entities tied to Hollywood-based The Cornerstone Group, records show.

› ‘Affordability crisis’ forcing more Jacksonville-area residents out of rental homes
Florida housing prices have shot up in the national ranking overtaking states like Minnesota and Connecticut. The price of rent is following closely behind, and it has created what economists call an affordability crisis, one that local renters are trying their best to navigate.

› Manatee, Sarasota real estate market ends 2021 in record fashion
More than $15 billion changed hands in residential real estate deals across Manatee and Sarasota counties in 2021, a year that included prices that rose to unprecedented levels while the number of closed sales still managed to break levels set a year ago.

› Oceanside spec home in Palm Beach sold for $57 million
An oceanside spec home in the tony estate section of Palm Beach sold for $57 million. The 12,427-squre-foot mansion, sitting on little under an acre and located at 916 South Ocean Blvd, just across A1A from the ocean, was bought through a limited liability company, Mawa 916 LLC on Dec. 30th, and represents the second largest sale in Palm Beach in the past six months, according to property records.

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