Everyone knows that it’s hot in South Florida. That said, the real estate market just got hotter than a Miami Summer. While the fact that the real estate market in South Florida is extremely hot right now might not be particularly surprising to those of you in the know, there are some interesting factors that are driving the current surge in demand.
Just how many people are making the switch? We’ll let the numbers do the talking here. It has been estimated that 845 people will be moving to Florida every single day right up until the year 2025. Many of those people intend on calling South Florida home.
By exploring those factors here we can get a glimpse at the big picture in terms of the demand for South Florida real estate as a whole and what’s driving it.
Two Kinds of People
Before delving into the individual factors that are behind the current uptick in demand for South Florida real estate, there’s an interesting quote by Miami-Dade County Mayor Daniella Levine Cava that merits a closer look.
County Mayor Daniella Levine Cava exclaimed, “I like to say there’s two kinds of people. The people that already live in South Florida, and people who want to live here.” While that sentiment has been true for some time even more people are finding themselves flocking to the warm and inviting land of South Florida than before.
When you think about the prospect of flocks of people wanting to move to South Florida in 2021 through 2022 consider the fact that there are already roughly 9 million people in the area. This begs the question, will such a large influx of people affect the atmosphere or quality of life for the established residents of South Florida?
While large numbers of people moving to South Florida will certainly affect property prices and values for that matter, there’s little chance of them affecting much else. South Florida has always been a popular place to be and it’s shown a remarkable level of resiliency in terms of incorporating large influxes of new residents.
So more people have decided that South Florida sounds like a swell place to live. Don’t sweat it, think of how it could benefit you instead. This is an especially important thought for local business owners. More residents mean more customers, it’s a win-win, at least it can be.
If you’re wondering why so many people are currently wanting to move to South Florida, consider this. One of the biggest factors behind the current exodus from other states into the South Florida area has been COVID-19. More specifically, the constraints of the pandemic have been inspiring people to move out of overcrowded states to escape the congestion.
Entire flocks of people are coming down from densely populated Northeastern states like New Jersey. The pandemic highlighted inconveniences that were never as apparent as they are now. For example, although New Jersey has been an overcrowded state for some time, no one felt it as sharply as they did after the social distancing measures of the pandemic set in.
Coupled with unfriendly tax environments up North, it’s easy to see why the idea of moving to a place like South Florida would look pretty good.
Builders Feel the Strain of the Incoming Growth
While all of the new growth coming our way down here can certainly be a good thing, it’s proven to be a harrowing yet ultimately profitable experience for local builders. People are coming in so fast and in such large numbers, it’s putting a strain on the availability of building sites.
South Florida homes are getting snatched up like hotcakes and building sites are burning up just as quickly. This surge in demand has led to some intense competition among buyers as they scramble to find properties before someone else buys them up.
Property Values Show Signs of Going Up Even Farther as Buyers Purchase Former Drug Dens
The race for South Florida real estate has gotten so intense that buyers are axing their traditional reservations about moving into former drug dens and meth labs. With property scarce and prices through the roof, aspiring homebuyers are rolling up their sleeves and putting in the work to restore homes that were previously used for methamphetamine production.
While surprising to some, it’s not so surprising when you take a look at just how expensive South Florida real estate has become. It makes even more sense when you consider the very strong possibility that prices won’t be coming down anytime soon. If anything, they’ll rise even higher.
With home prices as high as a Miami high-rise, buyers are lowering their standards just to get a piece of this hot market. Keep in mind, most of these buyers aren’t intending to revamp these places for the resale value. All they want is a place to call home in the beautiful real estate jungle that is South Florida.
This new trend can be seen in a positive light as property values will rise even higher once buyers fix up former drug dens and turn them into proper homes.
What’s Next? Who Can Say
Some would say that the days of insanely high property prices in the area are numbered. Maybe so, but the sun won’t be setting on these property prices anytime soon. For now, it’s a snatch and grab, dog-eat-dog real estate market in which sellers stand to make a fortune while buyers are still willing to pay the price of admission for a South Florida residence.
Trying to tell the future is a futile effort at best, right now what’s important is to work with what we’ve got and folks, a steaming hot real estate market is not a bad thing to have.
If you’re planning on moving to the South Florida area, congratulations, it’s a great place to live. To those of you selling your South Florida home, congrats to you as well, at this rate you’ll have enough money to move anywhere you want.