Pandemic-era Florida housing boom coming to an end as some blame DeSantis
The housing boom that sent Florida’s real estate market into a frenzy is finally abating, after a pandemic-era spike that drew millions of Americans to the Sunshine State.
Over the past three years, Florida single-family home prices have surged nearly 50 percent as residents of the blue state scrambled to get their hands on property in the South.
But now, for the first time since 2011, home prices have leveled off and fewer home seekers are choosing Florida because of a noticeable drop in affordability.
“The fact that Florida is getting more expensive is making it less attractive to homebuyers,” said Daryl Fairweather, Redfin Corp.’s chief economist. Bloomberg.
A Tampa real estate agent said that while Florida Governor Ron DeSantis’s anti-Covid lockdown policies were once appealing, his recently launched White House candidacy and public crackdown on the politically awakened could drive clients away.
One of the reasons for the flattening of the Florida housing market is rising mortgage rates and insurance premiums, which have eroded the state’s attractive affordability.
For years, would-be residents have been lured south by Florida’s lack of a state income tax.
This was coupled with a desire to escape what many saw as overblown, awakened pandemic regulations in many states, including mask mandates and business restrictions.
But while locals accepted pressure from Florida Governor Ron DeSantis to get the state involved in national culture war debates as prices plummeted, the 2024 hopeful platform is seen as one reason for the recent decline.
Vanessa Charles, a real estate agent in Tampa, told Bloomberg that she saw a spike in business during the pandemic, but hostile politics sees this waning.
“People look at Florida differently now,” she said. “A lot of families who moved here called and said, ‘We have to leave’.”
Florida Gov. Ron DeSantis was spotted by a Tampa real estate agent as one of the possible factors behind the state’s recent housing market decline
According to United Van Lines data, 56 percent more people migrated to Florida than left by 2023 so far. By comparison, this figure stood at 62 percent at the height of the pandemic in 2021.
The covid-driven housing boom also hit the single-family home value market, which has seen a significant spike in recent years due to the significant influx of new residents.
According to data from Florida Realtors, median home prices rose 27.7 percent at their peak in May 2021, but fell to just 2.1 percent in March 2023.
Insurance premiums have also exploded in the Sunshine State, as a series of devastating natural disasters alongside high fraud rates have caused home insurance bills to average $6,000 — nearly four times the U.S. average.
Data from the Insurance Information Institute showed that the average premium in the state has increased 100 percent over the past three years.
In Miami, which became the most sought-after destination for New Yorkers as wakeful pandemic policies pushed them out of the Big Apple, the decline in affordability was especially evident.
The influx of new residents has made the hotspot the most unaffordable city in the US, according to real estate tracker RealtyHop.
Located in the exclusive Indian Creek neighborhood, this palatial Miami property has hit the market for a whopping $85 million
This mansion on lavish North Bay Road near Miami Beach is one of the most expensive in the Florida housing market at $76 million
A $77 million lakefront estate is also up for sale on nearby Ocean Blvd — and it even has its own dock
While out of reach for most, some of the most lavish homes in the Miami housing market show why it has earned a reputation for opulence.
According to Zillow, one of the most expensive mansions on the market is available for a whopping $85 million. The palatial estate, located in the exclusive Indian Creek neighborhood, has been up for sale for less than a month.
Complete with 14 bathrooms and seven bedrooms, the townhome is outfitted with lavish marble finishes, a home theater and several swimming pools.
And while many home seekers will be turned down the Florida housing crisis, there’s another $76 million mansion on the market for those who are feeling good.
Located on Miami Beach’s prestigious North Bay Road, the estate has everything a mega-wealthy homeowner could wish for.
The seven-bedroom, seven-bathroom estate offers panoramic views of the coastline, facing west with year-round sunsets.
Also on nearby Ocean Blvd is a $77 million lakefront estate for sale – and it even has its own dock.
The beautiful property offers six bedrooms, seven bathrooms and a gourmet private chef’s kitchen overlooking the island.