The housing boom that sent Florida’s real estate market into a frenzy has finally begun to wane, following a pandemic-era spike that saw millions of Americans flock to the Sunshine State.
Over the past three years, prices for single-family homes in Florida have soared nearly 50% as blue state residents rush to snag property down south.
But now, for the first time since 2011, home values have flattened and fewer home seekers are opting for Florida due to a noticeable drop in affordability.
“Florida becoming more expensive makes it less attractive to homebuyers,” Daryl Fairweather, chief economist at Redfin Corp, told Bloomberg.
A Tampa real estate agent said while Florida Governor Ron DeSantis’ anti-Covid lockdown policies were once appealing, his recently launched run for the White House and public pressure against the woke policy could scare away clients.
One of the reasons for Florida’s sluggish housing market is soaring mortgage rates and insurance premiums, which have eroded the state’s attractive levels of affordability.
For years, potential residents have been lured south by Florida’s lack of state income tax.
With that came a desire to escape what many saw as overdone, rousing pandemic rules in many states, including mask mandates and trade restrictions.
But as locals accepted Florida Gov. Ron DeSantis’ push to insert the state into national culture wars debates when prices were down, the 2024 Hope Platform was noted as a due to recent decline.
Vanessa Charles, a real estate agent in Tampa, told Bloomberg she’s seen a spike in business during the pandemic, but hostile politics sees that wane.
“People look at Florida differently now,” she said. “A lot of the families that have moved here have called and said ‘We have to go’.”
Florida Governor Ron DeSantis was noted by a Tampa real estate agent as one of the potential factors in the state’s recent housing decline.
So far in 2023, 56% more people have migrated to Florida than left, according to data from United Van Lines. By comparison, that figure was 62% at the height of the pandemic in 2021.
The covid-fueled housing boom has also hit the single-family home value market, which has seen a significant rise in recent years due to the large influx of new residents.
According to data from Florida Realtors, median home prices soared 27.7% at their peak in May 2021 – but fell to just 2.1% in March 2023.
Insurance premiums also skyrocketed in the Sunshine State as a series of devastating natural disasters and high fraud rates saw home insurance bills average $6,000, nearly four times the US average.
Data from the Insurance Information Institute revealed that the average premium in the state has increased 100% over the past three years.
In Miami, which has become the most sought-after destination for New Yorkers as revival pandemic policies drive them out of the Big Apple, the decline in affordability has been particularly evident.
The influx of new residents has seen the hotspot become the most unaffordable city in the United States, according to real estate tracker RealtyHop.
Located in the exclusive Indian Creek neighborhood, this lavish Miami property has hit the market for a staggering $85 million.
This mansion located on the sumptuous North Bay Road, near Miami Beach, is one of the most expensive in the real estate market in Florida, at 76 million dollars.
Near Ocean Blvd, a $77 million lakefront estate is also up for sale — and it even comes with a private yacht dock
Though out of reach for most, some of the most lavish homes in Miami’s real estate market show why it’s earned a reputation for opulence.
One of the priciest mansions on the market is available for an impressive $85 million, according to Zillow. Located in the exclusive Indian Creek neighborhood, the palatial estate has been on sale for less than a month.
Complete with 14 bathrooms and seven bedrooms, the semi-detached property is equipped with sumptuous marble finishes, a home cinema and several swimming pools.
And while many housing seekers are expected to be turned away from Florida’s housing crisis, another $76 million mansion is still on the market for those feeling good.
Located on prestigious North Bay Road near Miami Beach, the estate has everything a mega-rich homeowner could ask for.
The seven-bedroom, seven-bathroom estate offers sweeping views of the coastline, with west-facing views offering year-round sunsets.
Near Ocean Blvd, a $77 million lakefront estate is also up for sale — and it even comes with a private yacht dock.
The stunning property offers six bedrooms, seven bathrooms and a gourmet private chef’s kitchen with island views.