While the supply shortage for single-family homes in South Florida is well known, inventory for the condo market has also started to decline, according to a report from Bespoke Real Estate, a real estate broker. Available inventory continues to dwindle and is at a record low and the demand isn’t slowing down. With the influx of buyers still relocating to South Florida, developers of new construction and single-family home developers are desperately trying to meet demand by using vertical residences featuring spacious condo residences to accommodate the growing demand for 3-plus bedroom residences.
In South Florida, the availability of single-family homes within the tri-county area was 4,648 in February 2022, and in 2019, it was over 19,000. The prices of single-family homes in the tri-county area have also doubled in the last two years and the number of high-net-worth individuals has also spiked dramatically. Bespoke Real Estate recently released a report with new market data showing a 118% increase in the quantity of South Florida’s $10 million+ home sales in 2021 compared to 2020. There were 78 single-family home sales compared to 306 condominiums in the $10 million+ range.
“The year 2021 was historic for the real estate market,” Carolina Gerdts says, Executive Vice President at RelatedISG Realty. “The surge in demand for single-family homes caused an exponential volume of transactions, bringing record values for the sector. In 2022, we are experiencing a new phase since the lack of single-family homes has shifted many buyers’ interest to condos. Overall, broadening your home search, whether you are a first-time homebuyer or not, to include condos could increase your options. While we predict that larger condos, those with living square footage big enough to accommodate families, will sell first, size is not the only reason buyers consider them. The lifestyle and amenities have drawn many to South Florida buildings and younger professionals seem to appreciate other attractive features such as the walkability factor, minimal upkeep, and lower maintenance. Across the board, it is a budget-friendly way to access homeownership that could help them build equity to power a future move up. This means it is a moment for buyers to reevaluate priorities and purchase properties that make the most sense out of their needs. I advised my clients to look at a property by its potential. If they like the physical aspects of the property that can not be changed, such as location, square footage or layout, they should move into buying it.”
