The state of Florida may have one of the healthiest economies in the nation with historically low employment rates. However, we are still experiencing a housing shortage. Why is this and how will it affect Florida’s real estate market?
A Florida Housing Shortage, Despite a Healthy Economy
When you look around, it’s hard to deny that the Florida economy is thriving. According to UCF’s economist Sean Snaith, Florida’s economy couldn’t be any healthier. In fact, he projects that the Sunshine State will produce more jobs than the rest of the states combined throughout the next two years. Let’s take a closer look as to why Florida is still experiencing a housing shortage despite the economy being as healthy as a horse.
Florida’s Unemployment Rates
According to the Tampa Bay Times, Florida’s unemployment rates are at a historic low rate of just 3.1 percent. Florida saw the addition of 12,000 new jobs during the month of November 2019. This is great news and a positive outlook for job seekers and those looking to relocate to Florida.
Despite this great news, the state is still experiencing a housing shortage.
What Does a Shortage of Housing Inventory Mean?
The economic and population growth is continuing to drive demand for housing. However, new construction is behind the growth curve and not able to keep up with the increasing demand for housing.
Homebuyers in the market for housing in the lower price ranges are the ones feeling the effects of the shortage the most. This shortage of inventory is forcing buyers to look at homes above their price range or pushing them out of the market completely.
With housing in high demand and supply low, it is not only pushing the price point of homes higher but causing an increase in the cost of rent.
Navigating the Housing Market
Whether you are a buyer or looking to sell your home. It is always advisable to partner with a Realtor who understands Florida’s real estate market and can help you purchase the perfect home at the right price or get top dollar for your home. I’m Gitta, with Gitta Sells, and my team is dedicated to helping you through every step of the process. Please feel free to contact me with any questions you might have at (407) 330 – 2181 or firstname.lastname@example.org. Until next week, happy home buying and selling!