2022: Florida Real Estate
The predictions for 2022 take into consideration several factors.
Inventory
Population Growth
Tax and Affordability
And, there are three things we know for certain.
1) People Continue to Flock to Florida
The U.S. Census Bureau released figures on April 1, 2020, which saw Florida gaining more than 2.7 million residents since 2010.
“Some 1,000 new residents moved to Florida from other states every day in recent years, an overwhelming number of them retirees lured by sunshine, low taxes, and a more relaxed culture,” said Rick Doty with the Bureau of Economic and Business Research at the University of Florida.
Population growth is certainly a driving factor for the Florida housing market. Since the pandemic there has been increased demand from millennial buyers. There was talk about millennials being constant renters, but with jobs becoming more secure and this generation starting families, they are leaving cities and buying homes where dollars go further.
This is a great market for investors to explore when buying properties to flip, especially in Florida. The draw for many millennials leaving big cites such as Chicago, Los Angeles, and New York is that you can live in the Florida suburbs but have easy access to beautiful beaches, some of Florida’s major cities (such as Orlando, Tampa, and Miami), and enjoy wonderful year-round Florida weather.
2) Supply Isn’t Increasing Anytime Soon
Supply and demand of inventory has played a big part in the Florida housing market boom in 2021 and could still have a huge effect on 2022 predictions. Inventory remains below the level of demand.
Builders in Florida are ramping up the production but shortages of labor and construction materials (which isn't just a Florida issue) are hampering their ability to add to the housing supply and demand.
3) Interest rates continue to remain a great deal...even with a small rise.
Interest rates, which have been at record low levels in 2020 and 2021, are slated to rise in 2022. The current 30-year fixed mortgage is around 2.9%. Freddie Mac forecasts rates hovering around 4%. George Raitu, senior economist at Realtor.com, predicts an average of 3.6% for 2022.