South Florida's housing market has become a challenging landscape for many homebuyers and renters, as the cost of living continues to rise. With rental prices skyrocketing and inventory remaining low, locals are left to wonder what the future holds for them in the region.
Concerned residents like Martie Maguire is in fear and disbelief over 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 with Zillow, explained that while rental prices have eased somewhat, they remain unaffordable for many. According to Zillow's February Rental Market Report, rent prices increased nationwide for the first time in five months, with typical asking rents standing at $1,976, which is 6.3% higher than a year ago, but still below the peak of $1,987 in September.
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The report also reveals a potential cooling trend in South Florida's rental market, with Miami experiencing a month-over-month decline in 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 has impacted housing market activity.
Inventory continues to be a major issue in the region, as sellers are slow to put their homes on the market.
"While buyers are starting strong this whole shopping season, potential sellers were kind of slow off the starting blocks," Divounguy noted.
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Florida has become an attractive market for homebuyers, drawing people from other states and even other countries. This increased demand is expected to continue driving up house prices in the area. Divounguy emphasized that a full recovery of 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 obtaining pre-approval for a mortgage, which can give buyers an advantage over the competition.
