More than two-thirds of Florida’s condo buyers are moving out, a new study shows, and the state’s median price has jumped to $1.9 million.
But the trend isn’t likely to be limited to the affluent, as prices continue to rise across the state.
The National Association of Realtors has reported that the average condo price in Florida rose 7.8% in 2016, with the state in the midst of a market correction.
According to the report, condos accounted for 20.7% of the state market, up from 18.5% in 2015.
The association says the state is now one of the most expensive places in the country to buy a home.
“It’s the most unaffordable place in the nation to buy,” said Jeff Bohn, president of the association.
“We’re still seeing a lot of people looking for affordable housing.”
But the state still has the fifth-lowest rate of affordable housing in the US, according to the Housing and Urban Development department.
The average condo in the state cost an average of $1,933, according the agency.
The median price of a condo in Tampa was $1 million in 2016.
The housing shortage is having a ripple effect across the country, with many states seeing a housing boom, said Andrew Tully, president and CEO of the Realtor Association of Florida.
He says it’s important to remember that many condos are also available for sale.
“People are starting to realize they can buy homes at lower prices, so if you want to buy at that price, you can,” Tully said.
“They’re being forced to do it.”
A shortage of affordable homesIn many states, condos are the only option to buy in a tight market.
For instance, the US has the highest number of condos per capita in the world at 1,079, according ToS.
But in Florida, condos account for only 14.5%.
The shortage has made it difficult for people to get into the market, as many condo buyers have no choice but to move out.
In the past, some developers have made it easier for new condo owners to move in by offering rental assistance or offering incentives.
Tully says the industry is now getting ready to make condos available for rental and said that developers are also making it easier to rent in the area.
“The rental market is getting more available and available more often, so you’re seeing more people renting,” he said.
But developers are still facing a housing shortage.
“There are some people who are in a rental market that may have trouble buying a condo,” he added.
“When that happens, that’s when we get to the issue of affordability.”
But Tully says it is important to note that there are still more condos available in the market than people want to purchase.
“A lot of condos have been sold and those are still available,” he noted.
“So there are more condo owners in the marketplace, so there’s not necessarily a shortage.”