Florida Sees Record Increases in Property Prices Over the Last Year – Good News for Homeowners, Bad for New Homebuyers

Toby Hazlewood

Miami and Tampa both exceed national average growth

A report released on March 29 shows that property prices in Florida have grown at a rate that far exceeds the national average rate of growth in the last 12 months.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index measures the variation in property prices year-on-year in 20 metropolitan areas across the United States. The most recent data shows that average property prices across the nation have increased by 19.2%.

However, property prices in Miami gained 28.2% year-on-year while homes in Tampa grew by 30.8%, dwarfing the average. Only Phoenix, AZ reported a greater increase, with 32.6% growth.

The statistics will likely be seen as good news for those who already own property in these areas, showing that their investment is appreciating. For those who want to move to the areas it's less likely to be good news.

And yet more move to Florida?

Some believe that the increases just represent the price of living in a state like Florida. In spite of the heightened cost of buying a home, Florida is seeing ever-greater numbers of Americans moving to the state from elsewhere in the country.

While on some level this is good for the local economy, critics point out that the influx of people also places a burden on the state's infrastructure. Roads are busier than ever which also contributes to pollution. And as far as property prices are concerned, it has only served to push up the price of property as demand and competition for homes to buy, increases.

The flip-side - rents are going up and evictions are too

The downside of increases in the value of property is that those who have little option but to rent (as they can't afford to buy) are faced with rents that are skyrocketing too.

Rents in some areas of Florida have gone up by 30% or more, and have reached a level that's just not affordable for many renters. It's so bad that evictions in Pinellas and Hillsborough Counties have already far-exceeded the average expected in a typical year.

For those who already own a property in Florida, the news of 30% increases to the value of property will be taken as good news. But for those wanting to buy a home and enjoy life in Florida, their goal may have just become a little more unattainable - for now at least.

Are you pleased about the increase in property value in the state of Florida, or do you see it as yet another effect of the increased cost of living? Let me know in the comments section below.

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