The real estate market is affected by economic, financial, and social conditions as well as the perception projected by the media. During the last real estate cycle, the market was driven by developers, certain reckless lenders and speculators flipping properties for a quick profit. The media glorified this speculative fever by promoting people living the good life from profits made by flipping properties.
An in depth look at the current real estate cycle, which began approximately five years ago, reveals that the South Florida housing market is becoming more diverse as developers are meeting demand not only from investors but from actual end-users, who are both full time and part time residents. Developers are appealing to end-users by building low density projects with a neighborhood feel and by offering enticing amenities. More potential buyers from across the U.S. are opting to live full time in South Florida due to a favorable tax environment with no state income tax or inheritance tax. Also adding to South Florida’s allure is a growing technology sector, favorable employment opportunities, an ideal climate, beautiful beaches and close proximity to two international airports.
In addition to the many new condos being built, there is also a flourishing single family home market which is attractive to families with children. End-users coming from around the world view South Florida as a safe haven to preserve their wealth as well as a place to upgrade their family’s quality of life.
Despite economic volatility overseas, South Florida’s real estate market continues to perform very well. After years of criticism as a market overrun by speculators and absentee buyers, now more of the appeal is to end-users. This shift from speculators to end users adds stability to the real estate market and the economy in general.