High demand leads to high home values
Currently, the nation is in a great place because job growth is strong and the economy, as well as families, are getting back on their feet. This means that many more people are choosing to enter the real estate market as first-time buyers or to move. However, what happens when the supply is getting diminished quickly and the construction industry is struggling to keep up? Home values skyrocket.
Perfectly worded by a recent article in The Palm Beach Post and on floridarealtors.com, “The mismatch raises concerns straight out of Economics 101: Rising demand and a shortage of homes might send property values soaring in a way that squeezes middle-income workers.”
Since 2012, 191,000 new jobs were created in Palm Beach, Broward and Miami-Dade counties, which is great. However, only 17,000 permits were issued for new single-family homes, the National Association of Realtors said this week.
The struggle is coming from a lack of land, say housing analysts. South Florida’s geography, with ocean on all three sides, makes this problem inevitable.
The National Association of Realtors said that the whole country is seeing problems with this cycle. In two-thirds of metro areas, job growth has outpaced home construction.
“Even as the labor market began to strengthen, homebuilding failed to keep up and is now contributing to the stronger price appreciation and eroding affordability currently seen throughout the U.S.,” NAR Chief Economist Lawrence Yun said in a statement.
Palm Beach Country has some large developments in the work that will help meet the gap that exists there.
Miami has construction in the works, and they could offer the perfect home for you and your family. Please check out all of the amazing buildings and real estate to come to this energetic city! With any questions about other listings, please contact one of our expert agents today.