Is Now a Good Time to Invest in South Florida Real Estate?
South Florida has many second homes and condos where it is prone to boom and bust cycles that stem more from housing wants than needs. The population is certainly growing and demand for Florida housing is on the rise with nearly two million baby boomers retiring each year. However, is the demand growing slower or faster than the supply?
Second home ownership increases as you travel north of Miami up to 20% as you reach Palm Beach County. The large group of properties plays a big part in the fluctuation of home prices. It can be effected during an economic downturn but it also represents the desire of future American retirees that will buy while they can.
In Miami the economy is diverse with a heavy weight on finance. As you head north more jobs are found in retail and services. Healthcare is one of the largest creator of jobs in the tricounty area and is growing fast.
Regarding home prices over the past few years, there was a great increase with a continued momentum this year. The question is how much of this increase was also due to foreclosure deals? The boom of prices is always cautionary for those investing on the short term, but for those looking for a long term investment now is certainly a good time to buy.
The population is growing at an uneven pace with slower rates in Miami and faster as you move up the coast. Speculation for housing needs is as follows for the next three years. Palm Beach County should expect a 10% increase in housing needs with 30,000 owner properties and 23,000 apartments. Broward County should expect a need of 25,000 owner and 25,000 rentals and 30,000 owner and 36,000 apartments in Miami.
Retail and restaurant investments will be best in Palm Beach County as they have experienced the biggest demand growth over the past 2 years and the average income is high. However, all three counties will be in need of office space for the fast growing number of healthcare workers.