BOCA RATON, Fla. – The hot housing market in southeast Florida shows no signs of slowing, and that’s actually concerning to real estate economists.
While most of the country’s housing prices are returning to more normal long term trends, the latest data from researchers at FAU and FIU finds that the Miami-metro area is the only place where home prices have not gone down.
Additionally, the price-to-rent ratio is the highest it’s been in almost nine years.
“I think the rental prices in terms of rapidly increasing rents that’s over, unfortunately though what we’re looking at is that rents probably aren’t going to come down our incomes have not come up, they have not risen at the same level, Incomes in Florida are going up at a pretty significant clip but not as fast as our rents went up, so that again is adding to this unaffordable nature of housing,” said Dr. Ken Johnson with the FAU School of Business.
He added that Southeast Florida is now in the top ten list of the least affordable places in the nation to live.
While Johnson doesn’t believe we’ll have a real estate crash like the one that occurred 16 years ago, his team said the unaffordability crisis is not a good sign.
The researchers said that the typical home in South Florida is about 36 percent overvalued.