Housing Trends in Florida to Watch Out For
What are the trends in the Florida market to keep your eye on? Regional trends and demographics can have a big impact on your real estate business. Local trends can affect the number of buyers, the number of sellers, the number of new houses, top prices, and popular housing types and locations. Florida’s population is growing, as is employment. And Florida is a “pro-business” state, which attracts big businesses and employers. More and more people visit the state each year. The expected GDP growth in 2018 is 3 to 3.5% in Florida. The big drivers of the Florida economy are:
- Global economy
- S. economy
- National financial market
- State business climate
- Real estate sales
Florida Real Estate TrendsLet’s take a quick look at the factors and trends that will be shaping the Florida real estate market this year:
- Low Inventory: Housing inventory shortages are expected to increase prices.
- Owners Not Selling: Many homeowners are opting to renovate instead of selling their house and moving. People are staying in their houses longer: the median is now 11 years and it was once 7 years.
- Boost in Popular Oceanside Areas: Florida’s strong housing market is expected to keeping growing, particularly in areas like Deltona and Lakeland.
- Fewer First-Time Homebuyers: Increasing prices may dissuade rookie buyers who may struggle to save enough money for a down payment. Half of properties for sale have higher home prices, which new buyers can’t afford. Also, more experienced buyers may push first-timers out of the market.
- Millennials: As millennials age, earn more, and start families, you’ll see more young people buying houses, especially in the suburbs.
- Design Driven by Boomers and Millennials: Home renovations and new starts will increasingly have features that appeal to these age groups, such as wider halls and frameworks that can be easily expanded.
Hot Florida MarketsThere are two cities in Florida that are appearing on top 2018 housing market lists: Deltona and Lakeland. Deltona. The median home price is $275,050 in this town nicely situated between Orlando and Daytona Beach. The predicted price growth is 6% and sales are expected to grow 5.5%. There are many people living in Deltona and commuting to work in Orlando. Realtor.com expects its economy to grow more than 8% and employment to increase by nearly 3%. When the city was struggling to come back from the recession, investors bought up single-family homes for cheap and flipped or rented them. Those renovated rentals are selling now at a premium, but there are still great deals to be had. Lakeland. This town is well named, as downtown Lakeland sits on a beautiful, green lake. It is an hour southwest of Orlando and 40 minutes east of Tampa. Lakeland is seeing a revival with growing new subdivisions popping up just outside the city. Storefronts once vacant during the recession are being revitalized, creating opportunities for small businesses. Factors that are drawing homebuyers to Lakeland, particularly millennials, include:
- Job opportunities
- Lower prices
- Down payment assistance programs
- New amenities like fine dining restaurants