South Florida housing market struggles with high prices and low inventory – NBC 6 South Florida
The South Florida housing market has become a challenging landscape for many buyers and renters as the cost of living continues to rise. With rental prices soaring and inventory remaining low, residents are wondering what the future holds for them in the area.
Concerned residents like Martie Maguire are scared and in disbelief at the current state of the market.
“It’s scary, it’s very scary right now, there’s just no place to go and the rental prices are out of this world,” Maguire said.
Orphe Divounguy, an economist at Zillow, explained that while rental prices have come down somewhat, they remain unaffordable for many. According to Zillow’s February Rental Market Report, rental prices rose nationally for the first time in five months, with typical asking rents rising to $1,976, up 6.3% than a year ago, but still below the September high of $1,987.
The report also reveals a potential cooling trend in the South Florida rental market, with Miami seeing lower month-over-month rent prices. However, the average monthly rent in Miami remains high at $2,760. Divounguy attributes this cooling trend to the Federal Reserve’s decision to raise interest rates, which impacted housing market activity.
Inventory continues to be a major issue in the area as sellers are slow to put their homes on the market.
“While buyers are off to a strong start this whole shopping season, potential sellers have been a bit slow to start,” Divounguy noted.
Florida has become an attractive market for homebuyers, attracting people from other states and even other countries. This increased demand should continue to drive up home prices in the area. Divounguy stressed that a full recovery in the housing market will require inventory levels to return to pre-pandemic levels.
For those looking to buy in South Florida, Divounguy recommends finding a trusted real estate agent and getting pre-approved for a mortgage, which can give buyers an edge over the competition.