Housing prices have been on an upward trajectory for decades with few cooling-off periods. However, the social changes of the last three years have resulted in unprecedented housing price increases in many areas.
A Bloomberg report cites several reasons for these changes. With the advent of pandemic quarantines, many were longing for more home and yard space, which led to a migration out of large metropolises and into more suburban areas and smaller towns.
Related to this, the rise in remote work enabled people to move away from their office buildings and embrace life in areas with warmer weather, more peace and quiet, or a better quality of life.
But not all of the changes are pandemic-related. According to Bloomberg:
There's also a general shortage of housing - a deficit of a whopping 3.8 million housing units, according to recent studies. While most urbanists focus on the shortage of housing in urban centers, even less housing has been built in closer-in suburbs.
Add to this the pressure from large-scale institutional investors, who Bloomberg says: "see both single-family homes and multifamily apartments as a lucrative new asset class."
Which Florida towns are most affected?
Where there's a demand for housing, housing prices naturally increase. Cities and towns all over the country are experiencing rising home costs, but Florida is one of the states most affected.
According to Redfin, three mid-sized Florida cities are experiencing some of the highest housing price increases in the country.
Since May 2020:
Cape Coral, Florida has experienced a housing price increase of 72%, the highest of any city or town in the country. Today, the median sale price of a home is $449,500.
North Port, Florida, a town of only 80,000 people, has experienced the 4th highest housing price jump in the US, up 67% since the pandemic began. The median sale price in this area is now $400,400.
Lakeland, Florida has the seventh-highest housing price increase in the US. Housing prices are up 57% since May 2020, with the median sale price at $339,000.
While this is great news for sellers, locals looking to expand their space are in for an unpleasant shock. However, the Bloomberg report suggests the housing market may cool slightly in the post-pandemic environment.
Comments / 21