South Florida’s palm trees, beaches and quality of life have always been a major attraction, but with almost 1,000 people per day moving to the sunshine state, the living situation is becoming something never before seen in Florida. Locals are becoming priced out of the market and if rent continues the way it is, residents who have been in the area for 5+ years will be forced to move out. Palm beach resident Sandra Lanowich and her husband are hitting a breaking point. “We’re at the point that we might actually have to move out of the state because realistically we can’t afford to live here,” Lanawich said. The couple have been renting in palm beach gardens and have come to the conclusion that they will not find an affordable home anytime soon and their rent may continue to increase.
On top of higher home prices, mortgage rates and rock-bottom inventory, gas prices are fueling frustration, grocery prices are soaring and home insurance rates are through the roof. Realtor Barrett Spray said that more than half of his central Florida clients have been running into home insurance obstacles. “If a roof is older than 15 years, you cannot get insurance in Central Florida. It’s impossible. No one will insure it,” stated Spray. There are also fewer options for home insurance compared to just a couple of years ago. The Florida Office of Insurance Regulation tracks when insurance companies discontinue operations in the state. 2017 saw 7 property insurers stop operating. In 2018, 9 stopped operating, and in 2019, 10 halted operations. In 2020, 26 companies halted operations in Florida. We are still waiting on the 2021 numbers…
There will eventually be a stopping point, but realtor Katie Rawnsley says not to expect the market to change anytime soon. “This is definitely very different from anything we’ve ever seen,” she says. She has been a realtor for 11 years, but with fewer homes and a mass of buyers, she says not to expect the market to change. “We still have very little inventory. We have less than a month of inventory, which I think normal is around three months. So, until that starts to grow, I don’t see this slowing down.” One of her recent listings was for a home in Palm Beach Gardens that was listed at an asking price of $335,000. The property had 31 offers, 25 of which were all cash… With most work going remote, wealthy Americans are working from anywhere and Florida is becoming the place to be. These migrants are flush with cash and have no problem coming in over asking price to make sure they secure their offer.