Realtor.com’s high-level view of housing markets – foreclosures, underwater mortgages, rising prices, etc. – finds Fla. ranking third in overall stability.
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Friday, July 29, 2022
FLORIDA: A TOP 10 STATE FOR STABLE HOUSING
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U.S. home prices continue to hover at historic highs with bidding wars in some areas, even as the inventory of listed homes starts to increase and housing markets across the country begin to show signs of stabilization.
A revised Realtor.com 2022 forecast expects U.S. sales to decline by 6.7% this year, versus 6.6% previously.
10 U.S. states with the most stable housing markets
Utah
Washington
Florida
Texas
Idaho
Tennessee
Vermont
Arizona
South Carolina
South Dakota
Florida, ranking third, shows home prices rising but construction also gaining. The state has 9.6 housing starts per 1,000 residents, while its foreclosure rate stands at 1 in 1,211 housing units. Its underwater mortgages constitute 1.4% of all mortgages, and housing prices are currently appreciating at a rate of 25.7%.
Thursday, July 28, 2022
Techcon 2022 - LATEST INDUSTRY INNOVATIONS
EXPLORE THE METAVERSE & LATEST INDUSTRY INNOVATIONS AT YPN’S TECHCON POWERED BY BEACHESMLS
South Florida’s premier real estate tech conference was back, bigger, and better than ever! TechCon is a day-long knowledge-packed event with twenty powerful speakers sharing their insights on technology, social media, marketing, and more headlined by keynote speaker Jeremias “Jman” Maneiro.
The conference was held on July 26th at the Marriott Coral Springs Convention Center and was hosted by BeachesMLS and the Broward, Palm Beaches & St. Lucie Realtors®, Young Professionals Network.
From industry innovators to local and global vendors, technology professionals with a vast amount of expertise showing REALTORS® how to power up their real estate businesses. There was a wide variety of topics covered at TechCon, from the Metaverse with a focus on NFTs, Blockchains, and Lead Generation.
“We put a lot of thought into this year’s conference on how we can present our Members with information that is engaging but also have them leave with tools to implement in their business. The real estate industry is constantly evolving, and it is critical that all Realtors® adapt to all the new and exciting technology. TechCon will break down the necessary tools they need to help their customers accomplish their goals in this competitive market,” said Carlos A. Melendez, President of BeachesMLS and Broward, Palm Beaches & St. Lucie Realtors®.
TechCon’s keynote speaker, Jeremias Maneiro, discussed topics for REALTORS® with novice or advanced understanding. Jeremias is a tech-savvy millennial who motivates and specializes in helping everyone improve their expertise regardless of skill level or generational differences. He engages his audiences with high-energy, comedic performances that are infused with relative stories from his real-life experiences as a real estate practitioner of almost 14 years. He was speaking on topics that include predictive analytics theory with an emphasis on product features in Remine, Realist, and MLS-Touch, augmented reality relative to marketing, virtual teams and workflows, and more. Some of the speakers included the nation’s most knowledgeable experts in real estate and technology.
Additional speakers were Adam Brown (Emerging Technology), Amy Melendez (Social Media), Ben Schachter (Tech Broker), Danielle Boutin (Social Media), Elizabeth Rodriguez Hernandez (Tech Broker), Gonzalo Mejia (Social Media), Jameson Olsen (Social Media), Jason Sayen (Emerging Tech), Jolitta Brazzano (Emerging Tech), Jonathan Lickstein (Tech Broker), Lucy Edwards (Emerging Tech), Shari Carpenter (Tech Broker), Mercedes Saewitz (Tech Broker), Paul Eastwood (Emerging Tech), Steven Pastores (RentSpree Demo), and Matty Epstein (FBS Demo). Carlos A. Melendez moderated the conference, President of BeachesMLS and Broward, Palm Beaches & St. Lucie Realtors®, and Christopher Krzemien, President-Elect of Broward, Palm Beaches & St. Lucie Realtors®.
The conference was sponsored by CoreLogic, Supra, Rent Spree, FlexMLS by FBS, realtor.com, ListTrac, Rate My Agent, and Elm Street.
Wednesday, July 27, 2022
NAR STUDY: INTERNATIONAL BUYERS ARE BACK
In NAR’s annual report, 1 in 4 (24%) international buyers chose Florida. Nationwide, they spent $5.9B, up 8.5%, even as single-family home sales dropped 7.9%.
Foreign buyers purchased $59 billion worth of U.S. existing homes over a one-year period (April 2021 through March 2022) – an 8.5% increase from the previous 12-month period and the end of a pandemic-led, three-year skid.
The 98,600 existing homes sold – the lowest since NAR tracking began in 2009 – were down 7.9% year-to-year.
Overall, however, Florida led the nation in welcoming foreign investment as one in four international buyers (24%) selected property in the Sunshine State.
Top international buyer destinations
Florida (24%)
California (11%)
Texas (8%)
Arizona (7%)
New York (4%)
North Carolina (4%)
Florida ranking among residents of foreign countries
Canada: Florida was the No. 1 choice for 45% of Canadians
China: Florida No. 4 for 7%
Brazil: Florida No. 1 for 55%
Mexico: Florida No. 2 for 12%
Colombia: Florida No. 1 for 60%
Region of origin for Florida’s top foreign buyers
Latin America/Caribbean: 39%
North America: 25%
Europe: 12%
Asia/Oceania: 4%
Africa: 0%
Region not identified 20%
“For the second year in a row, restrictions and general caution tied to international travel during the pandemic slowed home buying by wealthier foreign buyers,” says NAR Chief Economist Lawrence Yun. “Even so, domestic home buying demand was exceptional and, therefore, boosted home sales nationally.”
NAR’s 2022 Profile of International Transactions in U.S. Residential Real Estate surveyed members about transactions with international clients who purchased and sold U.S. residential property from April 2021 through March 2022.
Foreign buyers who resided in the U.S. as recent immigrants or holding visas that allowed them to live in the U.S. purchased $34.1 billion worth of U.S. existing homes, a 5.2% increase from the prior year and 58% of the total dollar volume of purchases.
Foreign buyers who lived abroad purchased $24.9 billion worth of existing homes, up 13.2% from the 12 months prior and for 42% of the dollar volume. International buyers accounted for 2.6% of the $2.3 trillion in existing-home sales during the time period.
Typical foreign buyer home
The average ($598,200) and median ($366,100) existing-home sales prices among international buyers were the highest ever recorded by NAR – and 17.7% and 4.1% higher, respectively, than the previous year. The increase in foreign buyer prices partly reflects the increase in U.S. home prices, as the monthly average existing-home sales price rose to $374,300, up 10% from the prior period.
At just over $1 million, Chinese buyers had the highest average purchase price, and nearly a third – 31% – purchased property in California.
“Affordability challenges along with the inability to find the right property were the top reasons given for prospective international buyers who showed interest but ultimately did not purchase a home in the United States,” says Yun.
China and Canada remained first and second in U.S. residential sales dollar volume at $6.1 billion and $5.5 billion, respectively, continuing a trend going back to 2013. India ($3.6 billion), Mexico ($2.9 billion), and Brazil ($1.6 billion) rounded out the top five.
For the 14th straight year, Florida remained the top destination for foreign buyers.
All-cash sales accounted for 44% of international buyer transactions, nearly twice the rate (24%) of all existing-home buyers. Non-resident foreign buyers (60%) were twice as likely to make an all-cash purchase compared to resident foreign buyers (30%). Nearly 7 out of 10 Canadian buyers (69%) made all-cash purchases, the highest share among foreign buyers. Asian Indian buyers were the least likely to pay all-cash, at just 9%. Almost 6 out of 10 Chinese buyers (58%) and a quarter of Mexican (27%) and Brazilian buyers (26%) made all-cash purchases.
“Due to rising interest rates, overall home sales will decline in the U.S. this year. Foreign buyers, however, are likely to step up purchases, as those making all-cash offers will be immune from changes in interest rates,” Yun says. “In addition, international flights have increased in recent months with the lifting of pandemic-related travel restrictions.”
Type of homes purchased
44% of foreign buyers purchased their property for use as a vacation home, rental property or both.
64% purchased detached single-family homes and townhouses.
46% bought a home in the suburbs while 29% bought a home in an urban area, numbers which have held steady over the last five years.
5% bought property in a resort area, down from 17% in 2012
NAR “collaborates with groups across the country to help our members unlock and better understand the opportunities in U.S. real estate for foreign buyers, maximizing the global business potential in our local markets,” says Katie Johnson, NAR’s general counsel and chief member experience officer. The network has grown to include more than 100 real estate associations across 76 countries.”
Source: Florida Realtors®
Tuesday, July 26, 2022
EXISTING-HOME PRICES HIT NEW RECORD AS SALES SLOW
Nearly every region of the country saw a decline in real estate transactions last month, new NAR data shows.
Prices for existing homes climbed to a record high in June, continuing at a breakneck pace with double-digit-percentage annual increases. The median price for an existing home rose to $416,000 last month, up 13.4% compared to a year earlier, the National Association of REALTORS® reported.
Home prices continued to climb even as sales cooled in June. For the fifth consecutive month, existing-home sales—which includes transactions for single-family homes, townhomes, and condos—posted a drop. Sales were down 5.4% month over month in June and have fallen 14.2% compared to a year ago, according to NAR’s report. “Falling housing affordability continues to take a toll on potential home buyers,” says NAR Chief Economist Lawrence Yun. “Both mortgage rates and home prices have risen too sharply in a short span of time.”
A separate report released recently by NAR showed that housing affordability has dropped as mortgage payments have spiked 51% in one year. Meanwhile, the median family income has risen just 4.5% in that time.
Still, not all buyers are backing away. More homes are coming on the market, and buyers who can afford the higher prices have more choices and are snatching them up quickly. Existing homes sold at a record-setting pace in June, NAR’s data shows. “Finally, there are more homes on the market,” Yun says. “Interestingly, though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
Here’s a closer look at additional key housing indicators from NAR’s report on existing-home sales in June:
Housing inventories: Total housing inventory at the end of the month was 1.26 million units, up 9.6% month over month and 2.4% year over year. Unsold inventory was at a three-month supply.
Days on the market: Eighty-eight percent of homes sold were on the market for less than a month. Properties typically remained on the market for 14 days, which marks the shortest duration on record, according to NAR. That’s down from 16 days in May and 17 days in June 2021.
First-time home buyers: This cohort comprised 30% of sales, down from 31% a year ago.
All-cash sales: All-cash sales accounted for 25% of existing-home sales transactions, up from 23% in June 2021. Individual investors and second-home buyers, who comprise the largest share of cash sales, made up 16% of overall sales, up from 14% a year earlier.
Distressed sales: Foreclosures and short sales continued to make up a very small percentage of home sales—less than 1%, unchanged from June 2021.
Regional Breakdown
Three of the four major U.S. regions saw month-over-month sales declines, with the Northeast being the exception. Meanwhile, year-over-year sales fell in all four regions. Here’s a closer look at how existing-home sales fared across the country in June, according to NAR’s index:
Northeast: Existing-home sales held steady and reached an annual rate of 670,000. Sales, however, were down 11.8% from June 2021. Median price: $453,300, a 10.1% jump from one year ago.
Midwest: Existing-home sales fell 1.6% from the previous month to an annual rate of 1.23 million, down 9.6% from June 2021. Median price: $306,900, a 10.2% increase from a year earlier.
South: Existing-home sales fell 6.2% to an annual rate of 2.26 million, dropping 14.1% from the previous year. Median price: $374,900, a 16.8% increase from a year ago.
West: Existing-home sales dropped 11.1% month over month and reached an annual rate of 960,000, down 21.3% from a year ago. Median price: $624,000, a 9.6% increase compared to June 2021.
Source: Florida Realtors®
Monday, July 25, 2022
PHONE SCAMS DOWN, TEXT SCAMS UP
Federal efforts have decreased the number of phone scams, but criminals focus now on text scams. The 1B spam texts sent in July 2021 increased to 12B this June.
You may have noticed receiving fewer robocalls over the past year, but a new report finds scammers are increasingly using a new way to reach consumers: text messages.
A report from the Consumer Watchdog office of the nonprofit U.S. PIRG is urging the Federal Communications Commission to pass new rules against robotexts, including requiring phone companies to block illegal text scams.
“Illegal robocalls and robotexts likely will never go away,” an excerpt from the report reads. “But they’ll continue to plague us as long as enforcement is lax, phone companies don’t try harder and enough consumers fall for scams to make it worthwhile for thieves.”
Spam texts have surged over the past year, jumping from 1 billion sent per month in July 2021, to more than 12 billion as of June, according to RoboKiller, a service specializing in blocking unwanted calls and texts.
Last year, acting FCC Chairwoman Jessica Rosenworcel proposed new rules requiring wireless carriers to block illegal texts. In a statement released last October, the agency said complaints about unwanted text messages in 2020 more than doubled from the year before.
“We’ve seen a rise in scammers trying to take advantage of our trust of text messages by sending bogus robotexts that try to trick consumers to share sensitive information or click on malicious links,” Rosenworcel said in last year’s statement.
The top scam texts of last year involved bogus delivery messages claiming to represent Amazon, the U.S. Postal Service or other companies. The messages say an order can’t be delivered or will arrive tomorrow, with a malicious link consumers click, the watchdog report said.
Others included fake messages from banks and texts related to the COVID-19 pandemic.
Meanwhile, the number of robocalls has declined over the past year, in part because of FCC rules requiring the use of technology to better identify robocalls and efforts by the agency and states to go after robocallers.
Source: USA Today & Florida Realtors®
Friday, July 22, 2022
Why Invest in 360-Degree Tours and How to Get Started
360-degree tours give listings an extra edge and weed out the window shoppers from serious buyers. So now the question is, do you hire a professional or create your own?
I was an early adopter of 360-degree tours for listings in 2014 because I saw both the value in distinguishing myself from the competition and the benefits for buyers and sellers alike. We’ve used them for every listing no matter the price point, and our portfolio includes over 120 tours across various platforms.
Today there are more options than ever to capture and display listings.
So why should you be using 360-degree technology?
“While pre-COVID, virtual tours may have been a nice-to-have, today they are a must-have to help differentiate a real estate agent from competitors,” says Dan Smigrod, founder of We Get Around Network, a resource focused on helping real estate professionals with 3D and 360 platforms. “Potential home sellers are starting their journey online.”By not utilizing 360-degree technology, you may not even know you are missing business opportunities.
“Prospective buyers who contact an agent after taking an online virtual tour are far more likely to be serious about buying the property than the neighbor and their friends who show up at an open house for something to do over the course of a weekend,” says Brad Filliponi, co-founder of BoxBrownie., a 2018 National Association of REALTORS® REACH partner.
Working With a Professional
According to Smigrod, more than 50% of all real estate agents outsource real estate photography and virtual tours to professional real estate photographers.
“As a real estate agent, if you have a multimillion-dollar listing, are time-poor or want ultra-premium results, you should always hire a professional,” he says.
Hiring a professional to create a standalone 360-degree tour will typically cost around $200. The 360-degree tour service is often sold either as part of a marketing package or as a package add on. Searching for local providers in my area in Minnesota, the results showed that several companies offer packages that include photos, a virtual tour and a floor plan for between $340 and $475. Most quoted a turnaround time between 24 and 48 hours.
Many camera providers also have a network of photographers, with a directory on their websites where interested clients can book directly with the photographer. For example, Asteroom has on-demand photographers in over 70 metro areas. Clients can book with the photographer for a $299 package that includes a 3D tour, floor plan, 30 MLS shots and virtual twilight shots.
Going the DIY Route
Creating DIY 360-degree tours isn’t as out of reach as it may seem. In fact, Smigrod says he’d prefer to do so.
“In this piping-hot market, with such easy access to the 360-degree cameras and photo editing technology, if I were [an agent], I would definitely be shooting 360-degree virtual tours myself,” he says. “It gives you an instant advantage over your competition.”
There is an upfront cost to think about. Going DIY means acquiring the necessary technology if needed and covering ongoing hosting fees. Smigrod recommends deciding on which platform first, then picking out a camera and additional equipment. The process to create, capture and edit a tour is different for each platform, and the way the properties are displayed and navigated differs, so choose your preferred platform and then find a compatible camera.
Hosts charge either a flat fee or an ongoing monthly payment. BoxBrownie offers a flat fee per tour, starting at $16. Asteroom is $59 per tour. Ricoh costs around $45 a month, and Matterport’s most popular plan is $69 a month.
Then it’s time to pick equipment. For DIY 360-degree tours you’ll need:
- Camera
- Tripod
- Memory card
For cameras, Insta360 offers a package that includes the One X2 camera, a tripod and a memory card for around $500. Ricoh’s Theta line ranges from $300 to $1,000 for the camera alone; you can add a good tripod for about $100.
If you’d like to skip the camera altogether and use your phone instead, Asteroom offers a DIY kit that includes a tripod and rotator. The cost for the pair is $110. If, however, you decide you want to use a camera, the kit is also compatible with Ricoh, Insta360 and Trisio cameras.
Though the upfront cost might feel like a heavy lift, shooting virtual tours yourself is much more affordable than hiring a professional every time, says Filliponi.
Testing the Options
I tested a number of platforms. Five of those were done by professionals. For the others, I opted for DIY with a few different camera options.
I found the DIY process straightforward. Using one of the above-mentioned apps on my phone and a camera on a tripod, each 360-degree tour took from 20 to 30 minutes. The Matterport app did require some work to make sure shots were aligned properly to stitch together; each of the others simply had me label the panoramic photos prior to uploading. Ricoh’s tour platform required adding navigation points and choosing starting points. Of the DIY options, only Asteroom included a floor plan; the others required uploading your own. Ricoh plans to release an automated feature to create floor plans from the 360-degree images in the near future.
There can be discrepancies in room measurements and overall square footage among platforms. “We really hang our hat, so to speak, on our degree of accuracy,” says Michael Vervena, VP of sales & marketing for iGuide. “We know from studies buyers want accurate and reliable listing information. Accurate square footage and room dimensions are critical for providing the best service for buyers and sellers so they can easily make informed decisions.”
Here are some examples of the various platforms and camera solutions. Click on each link for a look at the 360-degree video the listed platform and camera produce.
Professional 360-Degree Tours
- Matterport shot by professional using Pro 2 camera
- RealVision shot by professional using DSLR
- Asteroom shot by professional using Trisio
- EyeSpy360 from Obeo
- iGuide
DIY 360-degree Tours
- Asteroom shot with cellphone
- BoxBrownie shot with Theta Z1
- Matterport shot with Insta360
- Ricoh360 tours shot with Theta Z1
Using Tours on the MLS
Using 360-degree tours on the MLS requires that you take steps to ensure you’re in compliance with MLS policy. First, make sure the tour is unbranded. Next, there can’t be any external links within the tour—you’ll want to comb all aspects of the tour, including the map and disclaimer, to make sure there are no external links. Most companies are aware of this requirement and have the option to turn off the links to make the tours MLS-friendly. Be sure to verify compliance ahead of time to avoid a fine from your MLS.
If you haven’t embraced 360-degree tours for your listings yet, hopefully, you might try them. There are many ways to capture a property, and it doesn’t have to cost a lot of money. It was a lot of fun testing these different solutions. Which do you think looks best? What listing trends are you seeing in your marketplace?
Brandon Doyle – Brandon Doyle, ABR, e-PRO, is a second-generation real estate pro with RE/MAX Results in the Twin Cities. He is also coauthor of the book M3—Mindset, Methods & Metrics: Winning as a Modern Real Estate Agent. Learn more about Doyle at www.doylerealestateteam.com.
Thursday, July 21, 2022
Gold Star family receives keys to new, payment-free, forgivable mortgage home in Port St. Lucie
Gene and Kathi Sandburg, parents of fallen Petty Officer Brendon Sandburg, received keys to their newly constructed home during a special home dedication ceremony Thursday, July 14, 2022.
Representatives from GL HOMES, St. Lucie County Veteran Services, Congressman Brian Mast’s office, Believe with Me Foundation and the City of Port St. Lucie welcomed Gene and Kathi to their new home with a payment-free, 25-year forgivable mortgage constructed by GL HOMES. The City donated the lot. The dedication featured the Navy Sea Cadets Color Guard, which presented the colors during the playing of the national anthem, and a ceremonial flag-raising conducted by Vietnam Veterans of America, Chapter 566, St. Lucie County. PSL’s Councilman David Pickett donated and delivered the flagpole and the American flag to the Sandburg family before the ceremony.
After the ceremony, surrounded by friends and family, the Sandburg family toured the 2,435-square-foot two-bedroom, two-bathroom, two-car garage home with a den decorated by the Believe with Me Foundation.
“We are honored to celebrate the dedication of a Gold Star home to the Sandburg family,” Councilman Pickett said. “As a veteran, my heart is overjoyed. To see people deserving as the Sandburgs makes this all worthwhile. The home represents more than just a structure. For the Sandburg family, it represents a new beginning.”
“Petty Officer Brendon Sandburg served our country with honor and distinction,” said Ryan Courson, GL Homes Division President of St. Lucie County. “GL Homes built this house as a labor of love for Brendon’s parents, Kathi and Gene Sandburg. We thank this Gold Star family for their service and our freedom. Through this home, Brendon will not be forgotten.”
“I’m overwhelmed and grateful for our new home. As I look at all of this, I know it’s because of Brendon,” Kathi Sandburg said. “We’ve always been proud of him, but I know he is behind this home. He is the reason this is happening. He’s our guardian angel.”
Petty Officer Sandburg, a Naval Hospital Corpsman, was assigned to Branch Medical Clinic in Yuma, Ariz., when he perished in a search and rescue helicopter training exercise Aug. 16, 2007. In recognition of his numerous military achievements, Petty Officer Sandburg was awarded the Navy and Marine Corps Commendation Medal; the Navy Expeditionary Medal; the Combat Action Ribbon; the Army Achievement Medal; the Global War on Terrorism Service Medal; Two Navy Good Conduct Medals; the National Defense Service Medal; three Navy Sea Service Deployment Ribbons; and the Navy Expert Pistol and Expert Rifleman Medals.
The Sandburgs are the latest recipients of PSL Gold Star Family Home Giveaway. In 2021, the family of Air Force Senior Airman Joshua Allen Reinwasser was the first family to receive a payment-free, 25-year forgivable mortgage coordinated by the City of Port St. Lucie. Learn more about PSL’s Gold Star Family Home Giveaway at www.CityofPSL.com/Veterans.
About Believe with Me Foundation
Believe with Me Foundation is a 501(c)(3) nonprofit organization dedicated to Bringing Hope and Help to America’s Gold Star Families. A Gold Star Family has lost a loved one in the service of our nation’s military. Believe with Me serves all manner of military death killed in action, killed in training, PTSD suicide and cancer-related deaths to exposures during military service.
Wednesday, July 20, 2022
The Eco-Friendly ADU: Housing’s Game Changer?
Accessory dwelling units have been touted for providing affordable housing solutions while also helping to alleviate inventory shortages. But their contributions to sustainability haven’t gotten as much attention. That may soon change.
An ADU is an additional housing unit built onto an existing property, whether as a standalone structure or an attachment to, say, a converted garage. ADUs typically average around 400 square feet but could be larger. About 100,000 ADUs are being built every year, according to a 2021 analysis by Porch.com, a home improvement website. Properties with an ADU are in demand: In the largest metros, homes with ADUs are priced an average 35% higher than homes without one, the study shows.
As multigenerational households grows, ADUs are expected to continue to increase in demand. Eighteen percent of buyers between the ages of 41 to 65, many of whom fall within the Generation X age segment, purchased a multigenerational home during the past year, according to the National Association of REALTORS®’ 2022 Home Buyers and Sellers Generational Trends Report. Further, homeowners may consider ADUs for rental opportunities and a possible income stream.
One company thrusting the eco-friendly side of ADUs into the spotlight is Spacial. The San Francisco-based company teams with a modular manufacturing firm to create customizable, energy efficient ADUs. Spacial CEO and national ADU expert Cory Halbardier recently caught up with REALTOR® Magazine to address the widening connection between ADUs and sustainability.
Q: How do ADUs achieve sustainability?
A: ADUs create something called “urban infill,” meaning they create more housing in neighborhoods with single-family homes instead of sprawling further away from jobs. This sprawling means that people would need to drive further to work each day, putting more pollutants into the air. ADUs, in themselves, are an eco-friendly response to the need for more housing without changing the character of neighborhoods like three-story multifamily housing would do. Spacial, in particular, has designed an ADU that is environmentally-friendly both in its construction—with the use of mass timber instead of concrete and steel—and in its ultra-low energy usage. Spacial ADUs meet most elements of Passive Home’s design standards and include energy-efficient appliances, LED lights, dual pane windows, and a solar photovoltaic rooftop system.
Are the ADUs all built off-site? What is the construction process like? What are the price ranges of a Spacial ADU, and are financing options available?
We partner with our sister company, Guerdon Modular Buildings, a leader in modular manufacturing, which builds all units off-site in a factory, and then they are driven to the final destination. Studio units start at $139,000, while the one-bedroom model starts at $157,000.
The Spacial ADU is built on an assembly line like the majority of all other products we purchase, such as smartphones, cars and TVs. It costs less to build than doing it onsite, and it’s built faster—in 11 days—and to a higher standard because it also needs to be built strong enough to transport.
Many folks finance ADUs as they would with any home upgrade. This means they will use cash-out refinances, HELOCs, second mortgages, renovation loans or cash on hand.
One of the hurdles often cited with creating ADUs is municipal zoning regulations or HOA rules. Do those remain challenges, or are more areas starting to welcome this housing option?
The challenge is all dependent on the area. In some places, like California and Oregon, the state has loosened restrictions on all cities and counties in the state, which keeps local municipalities or HOAs from blocking them. Changes in law like the ones we are seeing in these two states and others that are beginning to adopt them have paved the way for the ADU boom we’re seeing in California and starting to see throughout the U.S.
What is influencing the hike in demand for ADUs?
The pandemic not only created a new way to work but also caused more people to consider investing more into their home. Across the board, we’ve learned that people value flexibility, and ADUs provide that flexibility. ADUs aren’t just used as additional office space. In fact, about 50% of people installing ADUs are looking to create a passive stream of income in their backyard. The second largest group installing ADUs are those who are installing for family members. Whether for mom and dad to keep them out of a retirement home or for adult kids to help them get on their feet, ADUs are becoming the option many families choose. Others use it to “age in place,” where they move out of the main home and into the ADU, then rent the ADU and live off the rental income. Others may do it for themselves as extra space for an office, art studio or guest room.
Why do you expect ADUs to grow in popularity as a viable housing solution in the future?
As folks learn all the different ways they can use an ADU and how it provides incredible flexibility, the market will only continue to grow. One year, the home can be used as a rental, and four years later, older parents or in-laws can move in. In another five years, adult children can move in. Then a few years later, it can become an office. ADUs are one of the most flexible spaces someone can have in their home.
Melissa Dittmann Tracey, Contributing Editor – Melissa Dittmann Tracey is a contributing editor for REALTOR® Magazine. She can be reached at mtracey@nar.realtor. Follow her on Instagram and Twitter: @housingmuse
Tuesday, July 19, 2022
HOUSING CRASH COMING? HISTORY SAYS NO
With rising inflation and the Federal Reserve increasing interest rates, many are left asking, Are we going to see a market crash like we saw in 2008?
The Answer: No, it’s unlikely.
“The southeast Florida housing market is one of the hottest and most sought-after areas to own real estate in the country. The rise in interest rates will decrease the purchasing power of prospective home buyers, but when it comes to home prices, we will see more of a leveling off compared to what we saw over a decade ago,” said Carlos A. Melendez, President of Broward, Palm Beaches & St. Lucie Realtors®.
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What’s the difference between our current housing market compared to 2008? One thing that’s different is homeowners today have a record breaking amount of equity in their homes and have less debt due on mortgages.
Record Number of First Time Home Buyers The demand for housing is at an all time high. There are 18 percent more prospective homebuyers between the ages of 25 to 34 than there were in 2006. That is a total of 6.6 million more homebuyers exploring the market. As rent prices keep increasing, buyer competition will rise since one of the best ways to fight inflation is to invest in real estate.
Mortgage Loans Aren’t as Attainable One of the major issues with the housing market crash of 2008 was how easily people were able to get mortgage loans. Home loans were given to many unqualified buyers including borrowers who had bad credit scores and had low or no savings. Today, the underwriting process is more detailed and complex.
For context, there are currently 2.5 million adjustable-rate mortgages, which represents about 8 percent of active mortgages. Before the crash of 2008, there were 13.1 million adjustable-rate mortgages, representing 36 percent of all mortgages
Fewer Borrowers Are Behind on Their Payments More thorough qualifications from lenders and underwriters have led to lower mortgage delinquencies. In 2008, borrowers were defaulting on their loans in unprecedented numbers, which eventually led to the decay in our country’s financial markets and started a recession. Currently, mortgage delinquencies are just below 3 percent.
Questions? If you have questions about the current housing market conditions and whether it’s a good time for you to purchase a home, contact a local Realtor® today.
Source: Florida Realtors®
Monday, July 18, 2022
Study ranks Port St. Lucie high for safety and growth
PORT ST. LUCIE — With 15,000 people now living in the Tradition area of Port St. Lucie, Police Chief John Bolduc is creating a patrol zone just for that part of the city.
“Tradition has as many people as some of the other cities in our area,” Bolduc said.
Growth and safety go hand-in hand for Port St. Lucie, and the numbers indicate city leaders are balancing both.
Based on a study by U.S. News and World Report, the magazine ranks Port St. Lucie as the second safest city in the nation, coupled with being the seventh fastest-growing city in the country U.S. News based the rankings on metro areas’ murder and property crime rates per 100,000 people, determined by the FBI crime reports from 2018. For instance, the violent crime rate for Port St. Lucie was 249.8 per 100,000 people, well below the national violent crime rate of 368.9 per 100,000 people.
“I’ve been here 27 years, so I’ve ridden the growth roller coaster,” Bolduc said. “But this has been a profound period of super growth. It’s unprecedented.”
And that’s why Tradition is getting its own patrol zone this year.
The department previously had four zones and had been planning since 2019 to create the fifth one west of Interstate 95.
Crime in Tradition is low compared to other parts of the city, but Bolduc said there’s a high amount of service calls, another reason why the area needs its own district.
“We’ve been building up the staff since 2019 to be ready to create that district this year,” he said. “We’ve always been proactive. It’s been that way well before I became chief.”
“Port St. Lucie has a more relaxed atmosphere than its larger neighbors” such as Miami or Orlando, the U.S. News synopsis states. “Its clean streets and quiet neighborhoods are woven around scenic waterways and lush green golf courses. Homes in the area can be affordable to buy or rent, compared with other South Florida housing markets. However, as Port St. Lucie’s popularity has risen, so too has the cost of housing here.”
Bolduc credits community policing and data-based investigations as the two main reasons why Port St. Lucie would rank so high on the safety survey.
“We’re building partnerships with residents and businesses,” Bolduc said about the community policing.
With the metrics used by U.S. News, Naples was the only city deemed safer. Six more Florida cities trailed Port St. Lucie in the top 10. Port St. Lucie was also ranked eighth for the best places to retire by U.S. News.
“It’s great to be recognized, and it’s great for the community,” Bolduc said. “I raised my kids here and would recommend it.”
Lamaur Stancil is the Treasure Coast regional economy reporter covering business and industries, including retail, tourism and hospitality. Contact him at 321-987-7179 or lamaur.stancil@tcpalm.com and follow him at Lamaur Stancil on Facebook and @TCPalmLStancil on Twitter.
Friday, July 15, 2022
Port St. Lucie, Florida, Receives National Award for Using Public Communication to Inspire Change and Build Trust
City’s Communications Department Wins Sharman Stein Award for Storytelling Changemakers – Award Honors the Memory of What Works Cities’ Founding Director of Communications
NEW YORK – Today, Results for America announced that the Communications Department of Port St. Lucie will receive the third annual Sharman Stein Award for Storytelling Changemakers. The award, which honors the memory of What Works Cities’ founding Director of Communications, recognizes a city official or team that draws on the power of public communication to cultivate trust and collaboration between local government and residents.
The annual prize is given by Results for America, lead partner of What Works Cities, a Bloomberg Philanthropies initiative that helps cities use evidence and data to tackle their most pressing challenges.
“We are proud to announce this award recognizing the City of Port St. Lucie,” said Michele Jolin, CEO and Co-Founder of Results for America. “Sharman believed strongly in the power of public communication to inform and build trust with residents, and this award honors Port St. Lucie for its creative communications strategies that have helped city residents engage in civic life and address local challenges.”
Stein devoted her career to advancing storytelling that drives positive change in local communities. She spent decades working as a journalist for newspapers across the country and later led communications for city agencies and nonprofits in New York City. At What Works Cities, she helped city leaders embrace the importance of using data and evidence to make better decisions, and encouraged them to engage with residents to solve problems. Stein passed away from ovarian cancer in May 2018.
“When my team partnered with the Communications Department to educate residents about the City’s strategic planning process, it opened up a new level of data-driven engagement and communication with residents that I believe few other cities in the nation have achieved,” said Kate Parmelee, Director of Strategic Initiatives & Innovation at City of Port St. Lucie. “Their innovation and ideas allow us to reach thousands each year to gather the needed data, but also to educate and report the data back to citizens. The Communications Department helps engage our citizens in making significant changes in their city.”
Port St. Lucie’s Communications Department was selected as the winner of this year’s award, recognizing the team’s commitment to advancing Stein’s vision for cities to engage the community to build trust and to become actively involved in civic life. A few sample achievements include:
Over the past five years, the Communications Team’s work has earned more than 100 local, state, and national awards for its creativity and community impact.
According to the National Community Survey, more than 60 percent of resident participants rated the City’s availability of information, use of social media, and quality of video as excellent or good.
The team’s creative outreach efforts dramatically increased attendance at the City’s Citizen Summit, including for its virtual event this past year. Outreach included a new website dashboard and Feedback Report video.
Helped the city achieve its goal of exceeding its 2010 response rate in the 2020 US Census through a targeted data-centric Census educational and marketing campaign, ultimately helping Port St. Lucie to exceed the county, state and national response rate in 2020.
Created an extensive COVID-19 outreach program, including Facebook Live Town Halls with state and national representatives, weekly update videos with the City Manager, direct emails to residents, and a constantly updated website landing page, targeted to both residents and businesses.
“Our department’s vision is to reinvent government communication. By utilizing data and listening to our residents’ feedback, we are achieving that vision,” said Sarah Prohaska, Port St. Lucie’s Communications Director. “We have an incredible team and are extremely honored that Results for America and What Works Cities have chosen us to be among the cutting-edge cities recognized as Storytelling Changemakers.”
Team Members of Port St. Lucie’s Communications Department include:
- Sarah Prohaska, Communications Director
- Nicole Hricik, Marketing Supervisor and Communications Liaison
- Melissa Yunas, Communications Project Manager
- Maureen Kenyon, Social Media Coordinator and Digital Storyteller
- Gus Nadasi, Digital Technology Coordinator
- Avi Monina, Digital Media Production Coordinator
- Benjamin Elliot, Digital Video Producer
- Matthew Dutiel, Digital Video Producer
- Patricia D’Abate, Web Content & Graphics Specialist
- Alyssa Taylor, Graphics and Digital Content Specialist
Winners of the Sharman Stein Award for Storytelling Changemakers are selected based on their embodiment of the communications philosophy Stein championed; proactively leveraging modes of communication that reach residents with information about their city’s progress; and contributing to improving community trust, understanding, and/or engagement through their efforts. The City of Arlington (TX)’s Office of Communication was the inaugural winner of the award. Last year the award was presented to Gilbert, AZ.
About Results for America:
Results for America is helping decision-makers at all levels of government harness evidence and data to make progress on our greatest challenges. Our mission is to make investing in what works the “new normal,” so that when policymakers make decisions, they start by seeking the best evidence and data available, then use what they find to get better results. For more information, visit results4america.org.
About What Works Cities:
What Work Cities, a Bloomberg Philanthropies initiative, helps cities use data and evidence to tackle their most pressing challenges and improve residents’ lives. The initiative’s What Works Cities Certification program is the first-of-its-kind national standard of excellence in city governance that evaluates how well cities are managed and whether cities have the right people, processes, and policies in place to put data and evidence at the center of decision-making. Through the initiative’s expert partners, cities around the country are receiving support, guidance, and resources to succeed. For more information, visit whatworkscities.org.
Thursday, July 14, 2022
Port St. Lucie Ranks #2 in the Safest Places To Live In The U.S.
USNews Safest Places to Live in the U.S. in 2022-2023
Crime rate can be one of the deciding factors of where families settle down. Based on the metro areas’ murder and property crime rates per 100,000 people, determined by the FBI crime reports, these are the safest places to live in the country. For more information on how we rank, read the Best Places to Live methodology.
Naples, FL
#1 in Safest Places to Live
Nestled between the edges of the Everglades and the shores of the Gulf of Mexico sits Collier County, home to Naples… READ MORE
OVERALL SCORE 6.6
QUALITY OF LIFE 7.4
VALUE 5.2
Port St. Lucie, FL
#2 in Safest Places to Live
Port St. Lucie is nestled along Florida’s Treasure Coast, on the state’s southeast side, about halfway between Miami and… READ MORE
OVERALL SCORE 6.2
QUALITY OF LIFE 6.4
VALUE 5.9
Fort Myers, FL
#3 in Safest Places to Live
Situated between Tampa and Miami on Florida’s Gulf Coast, Fort Myers is a growing city. The “City of Palms” has long… READ MORE
OVERALL SCORE 6.0
QUALITY OF LIFE 6.5
VALUE 5.7
Portland, ME
#4 in Safest Places to Live
For the people of Maine, there is only one Portland. Maine’s largest metro area and economic hub features cobblestone… READ MORE
OVERALL SCORE 6.7
QUALITY OF LIFE 7.2
VALUE 6.6
Lakeland, FL
#5 in Safest Places to Live
Aptly named for its 38 stunning lakes, Lakeland is infused with Old Florida history and natural beauty. Remnants of… READ MORE
OVERALL SCORE 6.0
QUALITY OF LIFE 6.2
VALUE 6.4
Tampa, FL
#6 in Safest Places to Live
Residents of the Tampa Bay area enjoy both a laid-back beach lifestyle and the amenities of a large metropolitan area… READ MORE
OVERALL SCORE 6.4
QUALITY OF LIFE 6.9
VALUE 5.9
Sarasota, FL
#7 in Safest Places to Live
Sarasota has a distinct vibe that’s different from Florida’s relative coastal cities, with its own vibrant arts scene… READ MORE
OVERALL SCORE 6.7
QUALITY OF LIFE 7.0
VALUE 6.2
Worcester, MA
#8 in Safest Places to Live
A vibrant and diverse community nicknamed The Heart of the Commonwealth, Worcester, Massachusetts, is located… READ MORE
OVERALL SCORE 6.2
QUALITY OF LIFE 6.9
VALUE 6.3
Daytona Beach, FL
#9 in Safest Places to Live
The Daytona Beach population swells and wanes like the ocean tide. Every winter, the region’s beaches overflow with… READ MORE
OVERALL SCORE 6.2
QUALITY OF LIFE 6.5
VALUE 5.6
Ocala, FL
#10 in Safest Places to Live
Known as the “Horse Capital of the World,” Ocala maintains deep equestrian roots even as the area evolves into a diverse… READ MORE
OVERALL SCORE 6.1
QUALITY OF LIFE 6.4
VALUE 6.6
MORE
Wednesday, July 13, 2022
REALTORS® Foresee Strong But Calmer 2023 Market
Buyers will feel a little less pressure as home prices stabilize and the inventory crunch begins to slowly loosen over the next year, CEOs of five REALTOR® associations across the country predicted during a Tuesday webinar, “2022 Housing Market: Boom or Bust?” virtual briefing presented by the Northern Virginia Association of REALTORS®. The leaders—from associations in Colorado, Nevada, North Carolina, Texas and Virginia—offered insights into their local markets and how they compare to the nation as a whole for the remainder of the year and into 2023.
© Pgiam – E+/Getty Images
Charlotte, N.C.: Normalcy on the Horizon
Anne Marie DeCatsye, CEO of the Canopy REALTOR® Association in Charlotte, N.C., said the city’s explosive growth—which was happening even before the COVID-19 pandemic began—has created affordability challenges for home buyers. Charlotte is a magnet for new residents and businesses because of the city’s thriving finance sector, status as a major distribution hub with international airports and ports, and low corporate tax rate. Inventory there is tight, with homes on the market selling in an average of just 14 days. The median sales price of a home in Charlotte hit $462,000 in May. “Buyers have little room to negotiate,” DeCatsye said.
While rising interest rates, inflation and general economic uncertainty could lead to some slowing in the Charlotte market, “‘slower’ is a relative term,” says DeCatsye. “But the market is starting to look a little more like 2019. And our inventory started to rise for the first time [since 2020] between May and April.” DeCatsye predicts that prices are unlikely to decrease, but the sharp increases of the last two years may level off.
© Brad McGinley Photography – Moment/Getty Images
Denver: Inflation Hits Hard
Inflation is a significant issue in Denver, said Nobu Hata, CEO of the Denver Metro Association of REALTORS®. The area has a sizeable population of blue-collar workers that are more sensitive to the effects of rising prices, and with a steady influx of newcomers—as well as supply-chain issues and labor shortages—home prices are surging. “A $1 million home is no longer considered luxury,” Hata said.
Despite the supply constraints and labor problems, new construction is booming in the region. Hata said he sees migration into the Denver area continuing, which will affect both the homebuying and rental markets. The Denver suburbs are seeing a sharp increase in institutional buyers who plan on renting their properties rather than returning them to the market, Hata said. The result is higher rents and less For Sale inventory. DMAR is working with the local government to create and promote programs designed to help renters move into homeownership, such as rent-to-own education and down payment assistance. “When consumers are ready to own, we’ll be there as a REALTOR® association to help them out,” Hata said.
© Siegfried Layda – The Image Bank/Getty Images
Las Vegas: Diversified Economy Attracts Newcomers
Las Vegas is another city experiencing a steady stream of new residents, said Wendy DiVecchio, CEO of the Greater Las Vegas Association of REALTORS®. The greatest percentage of incoming residents are flocking from the neighboring states of California, Arizona and Utah. While Las Vegas is known for its casinos, the economy is rapidly diversifying—attracting warehousing facilities for Amazon and Apex, several new professional sports teams and manufacturing facilities for driverless cars. The area, which attracts snowbirds and retirees, is likely to continue seeing rising prices. But DiVecchio said she believes the lack of a state income tax in Nevada will help to keep the area affordable. In addition, the association is working with the local government on land-leasing options to increase affordability. “[The Bureau of Land Management] is leasing land, and then we build housing on it,” DiVecchio said. “People own the homes, but they don’t have to pay the land prices.”
© traveler1116 – iStock/Getty Images Plus
Fairfax, Va.: Home Prices, Sales Leveling Off
Fairfax, Va., is fortunate to have low unemployment and high average income, says Ryan McLaughlin, CEO of the Northern Virginia Association of REALTORS®. The economic stability is due in part to the city’s proximity to the nation’s capital and a large population of federal employees and defense contractors. The area also boasts a booming tech sector that includes Amazon, Google, Facebook and Raytheon Technologies. Despite the solid economic underpinnings, the region also has experienced surging home prices, and inventory currently sits at a tight 0.8-month supply. McLaughlin predicts that both sales and prices will level off, with prices increasing by only 3% by the end of the year. In addition, the association is looking at ways to increase inventory and affordability, with one possible avenue being zoning reform in Fairfax’s Arlington County. “Arlington is looking at eliminating single-family zoning to allow for multifamily and building more units,” says McLaughlin. “We’re looking at all potential positives and negatives.”
© Gabriel Perez – Moment Open/Getty Images
San Antonio: An Affordability Haven
The efforts that the San Antonio Board of REALTORS® has put into advocacy for its members and consumers have paid dividends for affordability, said SABOR CEO Gilbert Gonzalez. Though the region has experienced a sharp increase in population—Texas as a whole has gained 500,000 new residents every year since 2019—the local San Antonio market still offers homes at many different price points. The National Association of REALTORS® recently dubbed San Antonio a “hidden gem” for real estate. Gonzalez credits the strong local economy and SABOR’s work with the local government and the San Antonio Housing Authority with keeping the market open to more consumers. “We worked with the city to make San Antonio affordable now and in the future,” says Gonzalez. “The city continues to remain the most affordable metroplex in the state.”
Catherine Mesick – Catherine Mesick is a writer and a member of the National Association of REALTORS® Advocacy Group. She can be reached at cmesick@nar.realtor.
Tuesday, July 12, 2022
Rental Costs Surge keeping Home Purchases A Better Option
Low inventory, a flourishing housing market and exponential population growth have caused rental prices in the Sunshine State to explode. Those rent leaps are causing hardship for workers and families across Florida. And they are driving
some residents to leave the state even as others flock here.
Florida’s median rent hit an all-time high of $1,705 per month in May, according to rental search website Apartment List, compared to $1,356 in the same month in 2021.
While some experts say the market could finally be getting some much needed reprieve after about a year of major increases, prices in 2022 are still at historic highs, and several regions in the state are considered overvalued.
And the sizzling market is slamming headfirst into an old adage about how much people should spend on housing. For decades, bankers and personal finance experts have recommended spending no more than 30% of your income on a rent or mortgage payment. But is that realistic in today’s hot market? And can renters still get a decent apartment following that 30%advice?
The answer: It depends on location and level of income. For renters who make a lot of money, higher monthly fees aren’t a problem. But what about people who make about the same as Florida’s median household income?
USA TODAY Network – Florida journalists settled on $1,500 as a benchmark after taking into account Florida’s median household income, which is$57,700. Thirty percent of $57,700 is $17,310, or $1,440 a month, so the team rounded that up to $1,500 to see what the median household could rent and still stay close to what experts recommend in terms of spending.
It is still possible to rent an apartment for $1,500 per month in Florida, but the size and quality of said unit can vary a lot, depending on the region.
Take Sarasota County, for example. Overall median rent hit $1,945 in May, a31.2% increase over the same month the year before and a 2.9% drop from April, according to Apartment List. Even the median price for a one-bedroom apartment in Sarasota is above the $1,500 threshold, at $1,540 per month. The median price for a two-bedroom is $1,894.
But there are some properties available at $1,500 or less, including one at1520 Glen Oaks Drive E., on the north side of Sarasota’s Bobby Jones Golf Club – a 639-square-foot one-bedroom for $1,450 per month.
Still, low-priced properties in the hot Sarasota market are few and far between.
“If somebody calls in and their budget is under $2,000, frankly, we tell them we won’t be able to assist them,” Jennifer Putnam, branch manager of Coldwell Banker Realty in Sarasota, said. “We tell them to go on Airbnb and go on the internet.”
Volusia County’s average rent jumped 2 1.88% year-over-year to $1,788 in May 2022, the 10th highest increase in the nation out of 108 metro areas measured by the Zillow Observed Rent Index, also known as ZORI.
An online search on May 31 found 469 apartment units available in Volusia County for $1,500 or less, including the Kabana Waterfront Living apartments at 303 and 261 Riverside Drive in Holly Hill, whose website listed one and two-bedroom units available from $1,475 to $1,750 a month. An Internet search in March showed rental rates for units at the Kabana apartments ranging from just over $1,200 to a high of $1,600 a month.
One unit available for $1,500 a month beginning June 10 is a one-bedroom, one-bath apartment on the second floor that offers 750 square feet of living space and a balcony with a view of the Halifax River.
The 108-unit complex was built in 1978 and consists of several two-story buildings surrounding a courtyard that includes a community swimming pool and a fitness center. It also has a dock and some outdoor grills.
Newcomers to Florida behind raging demand
Part of what is fueling the exponential growth in Florida is a huge migration of new residents. When COVID hit and the world went remote, many decided to ditch their urban dwellings in colder climates in favor of Florida lanais.
During the first three months of the year, nearly 10% of people searching for rental properties in Palm Beach, Broward and Miami-Dade counties were from New York, where higher leasing costs may make South Florida prices seem bargain-basement.
The search data from Apartment List’s first quarter migration report points to the Northeast’s interest as one reason for the significant rent hikes in the three counties, including Palm Beach County’s 27% increase for a one-bedroom apartment from May 2021 to May 2022. Last month, a one bedroom averaged$1,738, according to Apartment List.
A two-bedroom apartment also went up about 30% to a median price of$2,110.
In Jacksonville – and Northeast Florida as a whole – population growth has contributed to higher occupancy rates and, as a result, higher housing costs.
“I think Jacksonville is a really desirable city,” John Rutherford, senior vice president of investment sales at NAI Hallmark, said. “We have a good cost of living, great weather. [Jacksonville is] growing at 2.5% right now; historically it’s been 2% and the national average is less than 1%.”
Rutherford said occupancy rates are “very high,” and that this brings good news for the city gaining capital and more investment coming into the nearby communities.
“Jacksonville is still extremely affordable and, of the major markets in Florida, still one of the most affordable,” Rutherford said. “Yes, it’s gone up, but it’s still affordable for people with a rent-to-income ratio at roughly 20%, well below the 30% threshold that most economists consider a reasonable ratio for housing.”
Apartment List shows the median rent for Duval County in May was $1,471,with a two-bedroom renting for $1,432 and a one-bedroom for $1,197.
Still, Rutherford said there’s “definitely sticker shock for a lot of people who have been paying a certain rent.”
“The increase is there because of demand, and that demand is there because the quality of life is going up,” he said. “There are areas of town that offer amore affordable area, but the trade-off is some of those attractive features. In Jacksonville, we’re still seeing lower rent per square foot than other cities.”
Panhandle rents lower, not necessarily more affordable
As of May, the Pensacola metro area current median rent for an apartment was$1,552 a month, according to Apartment List. The median price for a one-bedroom was $1,199; a two-bedroom apartment goes for $1,399.
However, it’s rare to find a three bedroom apartment for $1,500. One and two-bedroom units are more common at this price point and most likely further away from downtown.
The median income for a renting household is approximately $37,000 in Pensacola, said Meredith Reeves, assistant housing director for the city of Pensacola. Many renters, she said, can’t afford $1,500 per month units.
“That median income includes the owners and renters. It’s the average of everybody,” Reeves said. “When you’re looking at the rental market, typically a renter household will have that lower median income.”
The lack of inventory for affordable options puts more strain on renters.
“There’s more scarcity the lower the person’s income,” Reeves said. “There are fewer units available for somebody that may only be able to afford $500 or$700 or $800 a month. Those are very difficult to find. It’s taking people longer to find units.”
Rob Warnock, senior research associate for Apartment List, said just 0.3% of the thousands of apartments on the company’s website in Southeast Florida were priced at $1,500 a month or lower.
But Warnock noted that most major apartment search sites favor newer, pricier, and corporate-managed properties, leaving out mom-and-pop rentals that are often more affordable.
“Craigslist is going to show many more $1,500 apartments than we do,” Warnock said. “Our list is not representative of the South Florida rental market as a whole.”
Residents throughout the state feeling the squeeze
While money flows into Florida from out of state, finding an affordable place to live is becoming incredibly stressful for those who were already here.
“Finding that apartment is becoming more difficult,” said Kenneth Delgado, senior pastor at The House Church in Palm Bay, Brevard County’s most populous city. “There’s a supply that’s limited, and the demand is very high.”
Delgado is an organizer of One Brevard, a coalition of dozens of faith based entities and businesses in Brevard County working to address a number of community issues, including affordable housing.
Bishop Merton L. Clark, co-president of Brevard Justice Ministry Inc. and pastor of Truth Revealed International Ministries in Palm Bay, said the apartment crunch is hitting residents of Brevard with an income of less than$46,000 a year hardest.
The Brevard Justice Ministry currently is working on finding solutions to affordable housing issues.
“It’s affecting folks who are struggling,” said Clark. “White, Black, Hispanic. It doesn’t matter. It’s affecting thousands of folks” in Brevard.
Florida’s capital city is also facing its own crisis. Tallahassee saw a 20% rent increase in 2021, and in February, Leon County and the city of Tallahassee governments held a joint workshop to tackle the issue.
For Leon County – including the city of Tallahassee – the average median income for a household of four is $76,400. A four-member household with an annual income of $6 1,050 is earning approximately 80% of the average median income, according to city and county housing reports.
If that household is spending more than $18,315 per year, or $1,526 per month, for housing, utilities, homeowners insurance, etc., the household is considered cost-burdened.
In Leon County, renter occupied households are nearly three times as likely to be cost-burdened than homeowner households.
The percentage of cost-burdened renters in Leon County (55%) is higher than the Florida average of cost-burdened renters (52%); while the percentage of cost-burdened homeowners in Leon County (20%) is lower than the Florida average of 25%.
As of early June, roughly 70 rental listings for at or around $1,500 were available in Tallahassee. Location, amenities and other factors are driving up interest in some properties compared to other listings.
Rami Deeb, who manages and owns several rental properties in Tallahassee, said he gets numerous inquiries from interested renters. He recently leased outa duplex in Frenchtown, the oldest primarily Black neighborhood in Florida, with three bedrooms and three bathrooms that’s a few blocks from the governor’s mansion.
A Florida State University law student will live in one unit and the other unit within the duplex will be used for his parents when they come in town to visit. Deeb said the duplex, built in 2007, attracts college students, but he’s seeing a shift.
“Occasionally a young family (shows interest), especially lately,” Deeb said. “There have been a lot of out-of-state young families or even older families that are wanting to move to Tallahassee because this is in their price range.”
Higher rent prices across the state doesn’t always mean residents are going to get better quality – at least not right away. In Volusia County, the Kabana apartments complex was sold on March 4 to a California investor for $18million, raising concerns by some residents that a significant rent hike was looming.
The website for the Kabana apartments as of May 31 described the complex as a “quaint and private oasis” featuring units with “immaculate waterfront views, chic hardwood floors, and a gourmet kitchen.”
But longtime resident David Litz said in a March interview that the pool had been closed for more than a year because of cracks in the structure. A tour of the building he lived in shortly after the Kabana’s sale showed dimly li hallways with cracks in the walls, and apartment units that did not appear to have been significantly updated since the 1970s.
Jessica Harris, assistant general manager for the Kabana apartments, said in March that her understanding was that the new owner did in fact plan to change rental rates, but added, “we’re going to renovate them first.”
When rent gets too high, people move
In some cases, rent increases are leading to a migration out of Florida. It’s the reverse of the narrative so often repeated. As the wealthy migrate in and pay cash for homes valued at previously unthinkable highs, the cost of living is becoming too much to bear for some locals.
That’s what happened to Tanya Rose, who moved to North Port in 1989 when she was 10 and lived there and in the Venice area until halfway through 2021.
Rose was living in North Port with roommates for $1,450 per month, until her landlord raised the rent to $2,400. That was when she realized it might be time to join the rest of her family in North Carolina.
She now works in a brand-new dermatology office and lives outside of Hickory, North Carolina. She said she’s run into people at work with a 941 area code, who have also moved to the area from North Port, Port Charlotte and Sarasota.
“Everybody’s flocking to Florida, but people who grew up in Florida can’t afford to stay,” Rose said. “It’s terrible. It’s sad. It’s a beautiful place to live, but it wasn’t feasible to go to work, pay bills and that’s it.”
Even those who can afford to pay more for rent are having trouble finding the right place. Vicki Tipton, who has rented a three-bedroom pool house in a North Port complex for the past three years, said in late May that she sent in nine different applications for various apartments only to be denied each time, she thinks because of her below-average credit.
Every application cost $50-$75 per person, Tipton said, and since they’re a family of four adults, each apartment application cost between $200 and $300.
Guerby Noel, a senior attorney of equity advocacy at Legal Services of Greater Miami, said that more middleclass tenants have been coming to his organization for help since the pandemic started. Many of them are also dealing with extraneous fees, which Noel said seem to be landlords’ way of recouping pandemic-related losses.
In Pensacola, a 29% rent change difference compared to the previous year has left many residents in a crunch.
It’s been tough, said Nicole St. Aubin Benavente, a broker at Realty Masters of Florida, the largest property management company in Pensacola. Our Florida, a program that offered COVID-19 rental assistance program offered during the pandemic, ended last month. As a result, Benavente said she’s seeing an uptick in delinquencies, and some renters are boxed out if they don’t have at least a 600 credit score.
“We had a gentleman in here last week. He said, ‘I have money. I’m living in a tent,’” she said. “We’re seeing more and more of that, where people are on Facebook and posting their setup of like, ‘I will be living in a car for a month .I need you to tell me where I can go to the bathroom’ or ‘Here’s my campground. Does anybody have a tarp?’” Tipton said she estimates her family has spent about $2,500 on application fees alone.
“I can’t get local Realtors to give me the time of day. They all want me to buy a house. Well, I don’t want to buy a house right now. I can ’t,” Tipton said. “I’m going to be paying an extra $1,000, more or less.”
Price of materials, other costs adding to the rent problem
Low inventory is partly to blame for soaring rental prices, but the firms that build the properties are facing their own challenges.
Total project cost at Verdex Construction, which builds rental units in most of Florida, has been increasing about 2% per month for the past year, said Rex Kirby, the company’s president.
Prices are up for concrete, rebar and scrap metal, exacerbated by Russia’s ongoing attack on Ukraine. It’s gotten to the point where Verdex has to have some pretty “unusual” conversations with its clients, mostly about how unpredictable pricing can be.
“It was very uncomfortable at the beginning because we’re supposed to be the experts, but people aren’t holding numbers for a couple of weeks,” Kirby said. “We have to educate them on what’s going on, explain it and be transparent.”
The Florida Housing Finance Corporation, the state entity focused on building new affordable housing, is putting most of its efforts into getting existing projects done, rather than renovating old ones, Trey Price, the corporation’s executive director, said.
Developers that are currently building affordable apartments through the finance corporation were awarded those deals years ago, before the market was the way it is now, Price said. Since costs have gone up so much, the Florida Housing Finance Corporation won’t penalize those developers for pulling out of the projects, he said, as it would have in the past.
Out of the roughly 200,000 units the corporation has built throughout the state, 98% of them are full, Price said. They’re affordable cost-wise, but aesthetically they don’t look any different from a market-rate complex with a clubhouse, he said. People who want a unit can expect to wait for months or even years.
“We’re making sure that units in the pipeline we’ve already awarded, that those get done,” Price said. “It’s really important to try to do what we can to get as many units as we can for our dollar. We’ve shifted some priorities away from redevelopment, because we need more units at this point.”
Larger market boom boosts rentals
One way that rental inventory has actually been boosted is through the booming housing market. Angela Waldrop, a rental/sales associate with Dale Sorensen Real Estate in Vero Beach, said in some cases, people are purchasing homes for retirement and renting them out in the meantime.
“I would say that it has increased, not decreased,” Waldrop said of the rental housing supply, “as more people are taking advantage of the increased rental rates. There is definitely an increase, in my opinion, of people purchasing prior to retirement and listing their home for rental in the meantime.
“Also, there has been an increase in people leaving their residences for the season and capitalizing on the rates. Oftentimes, taxes and insurance can be covered for the year with a one-month rental in February or March, as these are the two strongest months.”
Waldrop said the market for high end, shorter-term rentals in her area has heated as well.
“The rental market has been extremely competitive this past season,” Waldrop said. “A number of repeat Vero Beach renters were unable to secure a rental this year, as they have in the past. They could no longer do the month of February alone or a six-week rental, as they may have done for decades. To rent this past season, you had to rent for three-plus months, and, in many cases, the prices were significantly higher as well.”
Clients who are competing for properties have started to outbid each other by adding time to the rental, as opposed to going over the asking price, Waldrop said.
“Oceanfront rental prices were up 40% to 50%,” she said. “For example, one oceanfront client rented for $16,000 a month in 2021, $20,000 a month in 2022, and they have secured the same home for 2023 for $30,000 a month.”
For areas other than the oceanfront, Waldrop said, “there has been a 25% to 35% increase in the last year, but a 40% to 50% increase over two years.”
“The season was very competitive, and the prices were high in the 2022season,” Waldrop said. “I predict that it will be more difficult to secure a rental in 2023, as people have been far more panicked to secure a rental now for 2023 than in past years.
“I attribute this to the fact that they were unable to secure the type of rental in2022 that they are typically accustomed to – like the ability to secure a rental with a club membership, waterfront views, a pool or a pet-friendly rental.”
This year, Waldrop has secured rental deals for clients at prices as high as $50,000 for a one-month rental and $25,000 a month for an annual rental.
She believes the latter is the highest annual residential lease in Indian River County in at least the last five years, based on Realtors Association of Indian River County data.
Stevie Krumm, chief executive at Next Home Excellence, has been managing rental properties in Sarasota and Manatee counties for the past 15 years.
While demand has consistently been high for rental units in the area, the lack of inventory is a new phenomenon, she said.
“They (prices) are going to stay at this price until there’s new inventory,” she said.
For example, Krumm recently had a three-bedroom, two-bath, single-family home available for an annual lease. She marketed the property and found a potential renter almost immediately at $2,600 a month.
That same property just five years ago, priced at $1,600 to $1,700 a month, would likely have taken much longer to find a tenant.
She said that often when rents shoot up like this, people start blaming landlords for being greedy. But that isn’t looking at the full picture, she maintains.
She pointed to increased costs in maintenance and out of control insurance premiums. Many insurance companies are no longer covering roofs older than 15 years, leading to large replacement bills for landlords.
Even then, some of her landlords have made only modest price increases, she said. Despite market rents soaring near 50% in the area, some of her landlords raised rent by as little as $150 a month.
“That would be a large increase in previous years, but because many other people have seen $500 rent increases, the tenants were grateful,” she said.
Still, in an area where property values have increased by about a third, it is “understandable the owners want to capture some of the increased value.”
“There is definitely an increase, in my opinion, of people purchasing prior to retirement and listing their home for rental in the meantime.”
USA TODAY NETWORK – Florida reporters Dave Berman of Florida Today, Laura Layden of the Naples Daily News, TaMaryn Waters of the Tallahassee Democrat, Alexandria Mansfield of the Florida Times-Union, Clayton Park of the Daytona Beach News-Journal and Kate Cimini of the Fort Myers News-Press contributed to this report.
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