A lot of articles discuss the tight real estate market and strong real estate prices. “How can prices remain so strong in an environment of rising interest rates?”
What is going to bring Florida real estate down?
Rising sea levels for sure. But that is not what is going to initially crush real estate values.
Where I am going with this, has actually helped cause rents to rise precipitously. What are the components of a landlord’s costs? Taxes, insurance, cost of capital, vacancy, maintenance and upkeep.
Insurance. And the cost of insurance is going to destroy real estate demand and values. One property I manage went from $1800 a year in 2022, to $4100 in 2023.
Landlords can pass on this increase, but homeowners have to eat it. And with so many of our seniors on a fixed income, that can be impossible.
Flood insurance. Don’t get me started. There is so much going wrong here, it is scary. Google Alert NFIP. National Flood Insurance Program. This will keep you up at night and give you nightmares.
So, solutions? A good blogger does not just bitch, they provide solutions.
1). Don’t buy in a flood zone unless you are paying cash. (Allows you to self-insure).
2). Recognize not just flood zones, but mandatory evacuation zones. Another whole blog topic.
3). Florida Real Estate will crash. Momentously. Is it 10 years, 30 years, 50 years? 5 years? Every time you hear about a massive Artic or Antarctic glacier or ice island, imagine the impact on sea level.
Be sure to sell your real estate before the tipping point, because there will be NO BUYERS after.
I humorously imagined opening a real estate company and calling it 100 Feet Above Sea Level Realty.
BTW. The answer to the first question is “lack of supply.”
Randy 727-409-4663 (409-home).
Randal Jenkins
Rocket Mortgage NMLS #205-3417
Rent to Own Pasco Inc
Coldwell Banker F I Grey and Son Residential
5636 Grand Blvd
New Port Richey Fl 34652
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