Homeowners moving is at an all-time low. For some, it is by choice and for others, it is a lack of options. Let’s take a look at what this means for those looking to buy and how Florida’s real estate market might be affected?
Is Home Remodel on the Rise and Moving on the Decline?
An article released by housingwire.com confirmed that 2019 saw the lowest rate of people moving since 1947 at 9.8%. This doesn’t seem like a sharp decline compared to the previous year where only 10.1% of the population moved residences. However, when you look back at the 1950s, a whopping 20% of Americans moved each year. The decline has been a gradual one over the past 70 years. Why are fewer and fewer people moving?
Why are Fewer People Moving Each Year?
There are a couple of different reasons that people aren’t as mobile as they once were. Some of the reasons are by choice, while others are out of necessity or a lack of options.
An Aging Country
Baby Boomers make up the second-largest generation in the United States and they are beginning to age. This demographic is choosing to remodel and make necessary repairs to their current homes rather than starting over in a new one. The AARP released a report stating that 90% of people approaching retirement would rather stay in their homes.
New Home Construction
New home construction is at an all-time low. There is a shortage of homes for sale. Demand for the homes that are being built is high and supply is low This is a situation that drives up the prices of available homes and therefore pushes some buyers out of the market. Even though the economy is stronger than it has been in quite some time and mortgage rates are low, it is not enough for some buyers to secure the purchase of a home.
What Does This Mean for the Florida Real Estate Market?
Florida’s real estate market is very fortunate in that we are not feeling the effects as much as some areas of the country. We do see a housing shortage, especially when it comes to homes in the lower price range. However, with Florida being a hotspot for relocation, we are seeing higher than average rates of new home construction.
What does the year hold for Florida’s real estate market? We are still early in the year and only time will tell. This is Gitta, with Gitta Sells. My team and I are always here to help you with any and all of your home buying and selling needs. Call 407-330-2181 or email at gittasells@gitta.com.
