Florida Real Estate News


Affordable Housing Becoming an Issue in South Florida

Posted September 22, 2016

miami florida

  Home builders in the South Florida tri-county area including Miami Dade, Broward and Palm Beach Counties are not building homes fast enough to keep up with the demand for housing driven by job growth, according to a report issued by Lawrence Yun, chief economist for the National Association of Realtors. The study conducted by the National Association of Realtors analyzed building and employment data over a 3-year period for 171 metro areas across the United States.

  The Tri-county area includes the principal cities of Miami, Fort Lauderdale, Pompano Beach, West Palm Beach, and Boca Raton as well as several unincorporated areas. It is part of the wider South Florida region. With 6,012,331 inhabitants as of 2015, the Miami metropolitan area is the most populous in Florida and second largest in the Southeastern United States. The tri-county region needs 118,937 single-family building permits to get construction levels back to their historical average in relation to job growth, the trade group report said.

  "Inadequate single-family home construction since the Great Recession has had a detrimental impact on the tri-county housing market accelerating prices and making it very difficult for prospective buyers to find affordable homes, especially young families. Without the pick-up in home building you would have expected as job gains rose in recent years, new and existing home inventory has shrunk in this area. As a result, prices have shot up and affordability has seriously eroded despite mortgage rates at or near historic lows," said Yun.

  If the Miami metropolitan area wants to continue to be an attractive place to live, more attention needs to be paid to assuring the availability of the more modestly priced homes sought by first-time buyers and young families.

Information and opinions expressed above have been derived from a variety of sources
and are believed to be accurate and timely but are not warranted.

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