Housing Prices Make Florida a 'Tough Market to Move Into'
A study sees housing affordability there to be a key issue “for a long time.”
Elevated housing prices in Florida are making it a market mostly for move-up buyers and empty nesters, according to a new report from Florida Atlantic University and Florida International University.
“It used to be that you didn’t need a big salary to afford a home in the Sunshine State, but those days are over,” Ken H. Johnson, Ph.D., a real estate economist in FAU’s College of Business said in prepared remarks.
“Florida’s relatively low incomes should make housing affordability a key issue for a long time.”
It’s a difficult market to break into, the researchers said.
“We don’t expect home prices to fall sharply because our high rents serve to support current prices,” Eli Beracha, Ph.D., of FIU’s Hollo School of Real Estate, said in prepared remarks.
“Florida is a very difficult market to break into now unless you have a professional wage or the proceeds from a home sale in another state.”
The FAU-FIU report focused on housing affordability in markets nationwide and which areas were dubbed to be overvalued.
Florida metros make up six of the 10 most overvalued housing markets in the nation, according to the latest report from researchers at Florida Atlantic University and Florida International University.
Cape Coral-Fort Myers ‘Most Overvalued’
Cape Coral-Fort Myers ranks No. 1, with buyers paying 62.29 percent more than they should, based on the sales history in that market.
It is followed by Deltona (a 55.51 percent premium). Deltona sits about midway between Orlando and Daytona Beach.
No. 4. is Palm Bay-Melbourne (54.55 percent); No. 6 Tampa (53.54 percent); No. 7 Lakeland (51.99 percent); and No. 10 North Port-Bradenton (48.41).
The only other metros in the top 10 are No. 3 Atlanta (54.88 percent); No. 5 Charlotte (54.04 percent); No. 8 Boise, Idaho (50.83 percent); and No. 9 Las Vegas (48.71 percent).